SEC delays $1.5 trillion asset manager Franklin Templeton BitcoinETF application

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In a surprising turn of events, the U.S. SEC has advanced its decision-making process regarding Franklin Templeton’s Bitcoin ETF application, which was not due until Jan. 1, 2024.

The watchdog punted the previous Nov. 15 deadline to Jan. 1, 2024, to allow for a more comprehensive review of the proposal’s alignment with regulatory standards, particularly concerning investor protection and market integrity.

In essence, the SEC appears to have effectively extended the deadline a month prior to the original decision date. This move could indicate that the regulator is affording Franklin additional time to revise its filing before further deadlines. Notably, Franklin Templeton is the only applicant who has not updated its S-1 form or addressed the prevalent concerns regarding potential market manipulation. The asset manager joined the spot Bitcoin ETF race in September and intends to list the fund on CBOE.

The early move has caught the attention of market observers, given that Franklin Templeton, an asset manager overseeing $1.5 trillion, has yet to submit an updated S-1 form.

S-1 form
The lack of an updated S-1 form from Franklin Templeton has spurred speculation around its potential influence on the SEC’s final decision. Franklin is the only issuer in this round of applications that has not submitted revised documentation.

James Seyffart, an industry analyst, suggested that the move could be a strategic step by the SEC to pave the way for a series of approvals in early January. The hypothesis aligns with the potential approval of Hashdex’s application, which is also in the queue.

While the crypto market eagerly anticipates the SEC’s decisions, the regulatory body continues to prioritize thorough evaluation to ensure investor protection and market stability.

Market manipulation concerns
Central to the SEC’s proceedings are concerns over potential market manipulation and the ETF’s ability to safeguard against fraudulent activities.

The commission has highlighted the need for robust mechanisms to prevent manipulative practices in the Bitcoin market. The proposal’s consistency with Section 6(b)(5) of the Act, which mandates securities exchange rules to prevent fraudulent acts and protect investors, is under scrutiny.

The other ETF applicants — including BlackRock and Fidelity Investments — have already submitted updated S-1 forms with answers to many of these concerns.

Almost all of the applicants argue that the existence of a futures market and ISG memberships of the listing exchanges provide adequate monitoring of a Bitcoin market of sufficient size.

The main argument posited by exchanges and asset managers is that the SEC, having approved futures-based Bitcoin ETFs traded on the CME, should not reject a spot Bitcoin ETF as both futures and spot-based products depend on the same underlying markets for price determination.

The post SEC advances decision process on Franklin Templeton’s Bitcoin ETF application appeared first on CryptoSlate.



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[adaseb]

They eventually submitted this form a few hours later after we heard this news. Now it seems they are all on track to all be approved or rejected in January.

There is also some comment form that is opened and the public can view their opinions. Whether this will actually make a difference is another thing. But the SEC has to do it anyways as a formality.

[franky1]

franklin wants to re-classify itself as a commodity instead of a security.. to do basket share closings to btc direct in-kind.
but this then is moving them out of the SEC regulation and into the different regulatory oversight and also moving them out of being listed as a security on nasdaq to instead be listed as a commodity on CME

this does not mean it triggers the other 11 applications to need to be approved/declined at the same time

hashdex has also been delayed to give it time to re-file announcing a custodian(something the other 10 did months ago)

again
this does not mean it triggers the other 10 applications to need to be approved/declined at the same time

[bluebit25]

The excitement is being ramped up, the way the SEC is doing it makes me think that they are preparing to monopolize the management of BTC forever, and there is a lot of news towards that. Although I don't pay much attention to the news because, in the end it's just a reason to make prices go up and attract attention, and continue the cycle in the future  spot Bitcoin ETF will also be approved over time, and then people will no longer discuss it much in favor of new news.

[philipma1957]

I smell the fomo from a lot of brokers

[kryptqnick]

To be honest, I see this event in a different light. The SEC doesn't want to face the heat after another rejection of a serious company at the point of huge pressure upon it to rethink its position. So the easiest thing for them to do is to postpone a decision, which makes them look as if they are open to eventually accepting an application while also not committing them to doing so.
It's wonderful if the pressure eventually leads to change, but I still have my doubts about it. Because for all the talk that an approval is around the corner, it hasn't happened yet.

[avikz]

If blackrock has not yet received the approval on Bitcoin ETF, not sure how would anyone else get it. Blackrock is an immensely powerful organisation with contacts to the top of the government. If they are struggling to get the application approved, no one else would get it approved either.

I smell the fomo from a lot of brokers

Isn't it? It seems like a new gold rush. These big brokers are expecting a huge amount of investment from the market for Bitcoin ETF. Not sure why the investors are not opting for actual Bitcoin which is very easy to buy from open market.

[Lucius]

~snip~
Isn't it? It seems like a new gold rush. These big brokers are expecting a huge amount of investment from the market for Bitcoin ETF.

Expectations and assumptions can often be a very slippery slope, especially when it comes to something that basically did not result in any great interest in other countries where spot BTC ETF has been available for some time. Everyone is betting that the same thing in the US will be something completely different, but will it really be like that?

Not sure why the investors are not opting for actual Bitcoin which is very easy to buy from open market.

For the reason that they are already used to trading through ETFs, and because they do not have to directly buy, store and worry about the safety of their assets. When you look at all the ETFs that BlackRock has in one place, then all those who are their clients just want one more ETF in the series where they can trade with one click of their mouse.

[dzungmobile]

Expectations and assumptions can often be a very slippery slope, especially when it comes to something that basically did not result in any great interest in other countries where spot BTC ETF has been available for some time. Everyone is betting that the same thing in the US will be something completely different, but will it really be like that?

News and FOMO about Bitcoin Spot ETFs have been here many years. Since a day I knew about Bitcoin and this market in 2017, I heard about it many times, hope, disappointment and many market manipulations around ETF news.

Good signal is SEC. has started to directly talk with those companies that apply for Bitcoin Spot ETFs to improve their applications. They did not simply refused those applications and did not say any word with those companies. It's positive signal but it is still not enough for any approval. People are only optimistic that SEC. will make approvals soon.

I don't care about it because I believe Bitcoin will have its bull run without Bitcoin Spot ETFs.

[348Judah]

In a surprising turn of events, the U.S. SEC has advanced its decision-making process regarding Franklin Templeton’s Bitcoin ETF application, which was not due until Jan. 1, 2024.

This same January 2024 is what other bitcoin spot ETF application are waiting upon for an approval, just as all eyes are on BlackRock, the market is already pumping gradually towards this same target because it's going to be one of the major event to boost the market up even before the experience of halvin market pump which is what we see as bullrun, so this December can be as highly volatile in preparation on these two major upcoming events, if you're investing, do so now and hodl, there's more to anticipate over 2024 January decision by SEC on some of the applications for spot ETF.

[thecodebear]

Not surprising. I'm not sure why they delayed it again earlier than they needed to, but this is standard SEC practice when it comes to Bitcoin ETF applications: delay for as long as they can and then reject.

Until the SEC, and specifically Gary Gensler, feels so much pressure that he feels he is being forced to act against his will, ETF applications will continue to get delayed and then rejected. Political and legal pressure is certainly building against Gensler, but that doesn't mean he'll break. He is very against the entire industry and concept of Bitcoin and Crypto. While people the past half year or so have been blindly hoping an ETF will happen soon, Gensler could easily still just refuse to give in and keep delaying and rejecting for his last 3 years in office. Hopefully he breaks and we get ETF applications approved at some point next year to coincide with the bull market, but that is by no means guaranteed as people for some reason assume it is.

[Lucius]

~snip~
I don't care about it because I believe Bitcoin will have its bull run without Bitcoin Spot ETFs.

There are few who will not agree with that statement, but there are also many who believe that it would be much better if the approval of the ETF was combined with the halving effect and thus finally fulfill the dreams of many who are waiting for the price to reach six-digit numbers. Luxury houses, Lambos and yachts with, of course, the inevitable early retirement with the opportunity to show the middle finger to their employer and the authorities

~snip~
Gensler could easily still just refuse to give in and keep delaying and rejecting for his last 3 years in office.[/b] Hopefully he breaks and we get ETF applications approved at some point next year to coincide with the bull market, but that is by no means guaranteed as people for some reason assume it is.[/size]

I was convinced that he was somewhere near the end of his mandate, but I just checked now and saw the information that the Senate appointed him until 2026, and maybe they will appoint him even after that (if there is no limitation). However, I think that regardless of his views, he is not the one who makes the decision, but it is still someone in a much higher position.

Lobbying in the US has been brought to perfection, and it is more than obvious that someone else needs to be convinced, not just old Gary.

[tabas]

With the next attempts that is being placed for most of the Bitcoin ETF applications, SEC is probably doing their thing to approve them all at once and yeah, the chance of being rejected is still there. But with all of these applications, it's very likely that there will be an approval. The biggest of them is with Franklin, if this gets an approval, this shall make a FOMO on January and prior to halving, there's already a bull run if ever it gets approved. If not, we lose the FOMO first with these applications and the attention of the majority goes to the halving.

[gunhell16]

The excitement is being ramped up, the way the SEC is doing it makes me think that they are preparing to monopolize the management of BTC forever, and there is a lot of news towards that. Although I don't pay much attention to the news because, in the end it's just a reason to make prices go up and attract attention, and continue the cycle in the future  spot Bitcoin ETF will also be approved over time, and then people will no longer discuss it much in favor of new news.

From what I see right now, honestly, what the SEC will do or is doing is that they really like the delaying tactic. That's why others fall victim to FOMO in reality. But what others don't want and what others want will continue.

Then one more thing I just remembered is that the election is in the US next year 2024, so it is probably a Franklin that can be approved by the SEC as well as the ETF. Because it also provides support funds to politicians. It seems like it's just common sense that if officials want to support them via huge funds, they have to be approved. Now the question is whether the government officials are paid. The answer is yes; the fight is only for money in that way, in my opinion.

[wallet4bitcoin]

I see no reason why SEC will be wielding the kind of powers they are currently exercising on crypto related projects and applications. It seems like a personal vandetta between SEC and the crypto space.
So much disdain is been perceived and no one seems to be saying anything. They are targeting all successful crypto projects and icons in the space. Although I do not include that of SBF but on an overall I think SEC is bias and should be called to order.