The US Securities and Exchange Commission (SEC) recently announced that it will extend the decision-making period for two pending spot Bitcoin Exchange Traded Funds (ETFs), according to separate documents filed on November 17.
The first filing concerns a proposed rule change that would allow Cboe BZX Exchange to list GlobalX’s spot Bitcoin ETF. The proposal was submitted on August 4 and published for comment in the Federal Register on August 23. The SEC said it would approve, deny or initiate proceedings on whether to approve the rule change by Nov. 21.
The current order is a follow-up to the last option as it initiates a proceeding that will allow the SEC to approve or deny the filing by February 2024.
A second order involves a similar rule change for a spot Bitcoin ETF from Franklin Templeton. That application was filed on September 26 and published for comment on October 3. The SEC listed November 17 as its first decision deadline; it has now set a longer decision period to approve or reject the application before January 1, 2024.
GlobalX and Franklin Templeton are two of several applicants who filed for spot Bitcoin ETFs following BlackRock’s filing for a fund of the same type in mid-June.
SEC filings seek comment and input
While many reports have referenced these delays, the SEC has not officially described it as such in their orders. Instead, the documents seek input on market manipulation, surveillance sharing agreements, and other issues that have long existed around spot Bitcoin ETFs.
The SEC requested similar information about other proposed spot Bitcoin ETFs starting in September. Several other applicants updated these documents in response to the requests for comment. One industry member, ARK Invest CEO and CIO Cathie Wood, suggested that questions are a positive step forward, rather than an outright rejection. In a recent interview with CNBC, she said, “That’s movement… that’s significant.”
While the SEC may ultimately reject several pending proposals, some experts have a positive outlook. Bloomberg ETF analysts Erich Balchunas and James Seyffart estimate a 90% chance of ETF approval in January 2024.
