The US Securities and Exchange Commission has postponed decisions on spot bitcoin exchange-traded fund (ETF) applications from Global X and Franklin Templeton. The latest update is according to a recent note released by the SEC and tweets from ETF analyst James Seyffart. The delays were expected by industry experts.
On Friday, Seyffart tweeted that the SEC’s ruling on Global X and Franklin’s filing were delayed as anticipated. The application was not due for a decision until November 21st.
Lengthy Comment Periods Coming for Bitcoin ETF applications
Per Seyffart, a public comment period of at least 35 days will now commence on the Global X application. The timeline suggests that Global X is unlikely to receive a verdict until the end of 2023.
Talking about Franklin, Seyffart noted that, according to the report, the verdict was posted on November 15. However, he mentioned that he didn’t see it anywhere on the site or anyone talking about it.
The SEC can delay proposals up to 240 days from the initial filing. With these postponements, the regulator has signaled through its actions that it will use its full allotted review window for current spot bitcoin ETF applicants.
Despite growing industry frustration, the SEC maintains its typically opaque process regarding crypto ETFs. The repeated delays dash hopes for sudden approval surprises before year-end.
The SEC had recently announced delays in making decisions on two crypto ETF applications. This includes both Hashdex’s proposal to convert its bitcoin futures ETF into a spot bitcoin ETF and Grayscale’s application for an Ethereum futures ETF.
While postponements were expected, bitcoin prices often react to ETF filings and verdicts as indicators of crypto’s regulatory progress. However, the current update on the Global X ETF has had no effect on BTC’s price.
According to CoinMarketCap data, Bitcoin is hovering around $36,300 with no major movements in the last hour. But the SEC’s measured pace shows it remains in no hurry to greenlight spot bitcoin ETFs.