Bitcoin remains above the $36,000 mark despite a recent announcement from the US Securities and Exchange Commission (SEC) to delay the approval process for several spot Bitcoin ETF applications.
On November 17, the SEC filed extensions for its decision-making on spot Bitcoin ETF applications from GlobalX and Franklin Templeton.
SEC Delays Bitcoin ETF Approval
The SEC seeks public comments concerning a rule change enabling the listing of GlobalX’s ETF on the Cboe BZX Exchange. In August, the financial watchdog had said it would approve, reject, or institute proceedings on whether to approve or disapprove the rule change by November. 21.
With its current decision, the SEC has instituted proceedings allowing it to approve or reject the application by February 2024. Meanwhile, the federal agency extended the deadline for its decision on Franklin Templeton’s application to January 1, 2024. Both applications entered the scene following BlackRock’s application for a spot Bitcoin ETF in June.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Simultaneously, rumors abound regarding the SEC’s potential recommendation of a “cash create” fund-handling system for ETF applicants. This system would enable the exchange of cash for ETF shares and is seen as an alternative to trading actual Bitcoin, preventing reliance on third-party brokers.
Bloomberg analyst Eric Balchunas suggested that while 2-3 filers may opt for cash-creates, others might prefer the “in-kind” system. Balchunas emphasized that despite the benefits of the “cash create” system, it poses challenges for investors regarding spreads and taxation. He said t
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Author: Oluwapelumi Adejumo
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