What Does the SEC Comment Period Mean For Bitcoin ETFs?

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• The U.S. Securities and Exchange Commission (SEC) has reportedly postponed the approval decisions for both Franklin Templeton’s and Global X’s spot Bitcoin ETF applications.
• Bloomberg analyst James Seyffart stated that the SEC’s comment period for Bitcoin ETFs is beginning, and it should last for at least 35 days.
• The SEC has delayed a decision on the application of Brazilian asset manager Hashdex to convert its Bitcoin futures ETF into a spot Bitcoin ETF.

The US Securities and Exchange Commission (SEC) decided to postpone spot Bitcoin ETFs again; Investors will continue to wait.

SEC Delays Spot Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) is once again delaying the approval decision for two spot Bitcoin ETFs, fueling speculation in the crypto space. Meanwhile, the market was already anticipating a delay for both Franklin Templeton’s and Global X’s spot Bitcoin ETF applications as they lagged behind other spot Bitcoin ETF issuers in the race for the first spot Bitcoin ETF approval in the U.S. This delay could potentially result in the SEC postponing decisions on all Bitcoin ETFs.

The approval decisions for both Franklin Templeton’s and Global X’s spot Bitcoin ETF applications have reportedly been delayed, according to reports. The move came as both companies filed their applications later than other Bitcoin ETF issuers and submitted their updated applications to the SEC after the official deadline.

Bloomberg analyst James Seyffart mentioned that the comment period for the SEC’s Bitcoin ETF applications begins after being published in the Federal Register, and this usually takes a few days. Therefore, he highlighted:

“The comment period starts after it’s published in the Federal Register, and that typically takes a few days, so it could take us into late December, particularly for Global X’s application.”

Crypto investors will have to wait for the SEC’s decision to approve the first direct Bitcoin exchange-traded fund (ETF) in the U.S. Previously, the SEC had delayed a decision on the application of Brazilian asset manager Hashdex to convert its Bitcoin futures ETF into a spot Bitcoin ETF. Delays could impact decisions on all existing spot Bitcoin ETF applications, and an overall delay from the SEC is expected.

Balchunas emphasizes a point in the ETF race

Bloomberg’s senior ETF analyst Eric Balchunas mentioned in a post that he did not include WisdomTree and Franklin in the race because they filed too late and should be held back. He also noted that the SEC could delay all spot Bitcoin ETFs.

“They took too long. Please tell me the SEC won’t wait for all the S-1s to be updated to publish second-round comments.”

Meanwhile, the SEC is in talks with exchanges about cash creation for Bitcoin ETFs. The SEC will ask exchanges to make corrections in the next few weeks.