The U.S. Securities and Exchange Commission (SEC) is expediting its assessment of Franklin Templeton’s spot bitcoin ETF application, requesting public input just weeks after postponing its decision. Analysts speculate on the SEC’s swift action, suggesting potential implications for a broader wave of approvals in January.
In a statement on Tuesday, the SEC expressed the need for further analysis and initiated proceedings to address concerns related to manipulation, fraud, and the ETF’s association with Coinbase as its custodian. The regulator emphasized its commitment to ensuring compliance with national securities exchange rules designed to prevent fraudulent practices and protect investors.
The SEC’s move to institute proceedings does not signify conclusions on the matter but invites stakeholders to provide comments on the proposed rule change. Franklin Templeton, which initially submitted the Bitcoin ETF application in September, reacted promptly by filing an amended S-1 form following the SEC’s latest actions.
Analysts, including James Seyffart from Bloomberg Intelligence and Scott Johnsson of Van Buren Capital, speculate on the SEC’s accelerated timeline. Seyffart notes the agency’s early decision on Franklin Templeton and explores the possibility of a synchronized approval for multiple spot bitcoin ETFs in early January. Johnsson suggests that aligning comment periods could be a strategic move to facilitate simultaneous approvals.
As anticipation builds, market participants closely watch developments surrounding Franklin Templeton’s Bitcoin ETF, a pivotal step in the SEC’s evolving stance on cryptocurrency investment vehicles.