- Delays common with SEC ETF decisions; Franklin Templeton’s ETF unique in combining Bitcoin and Ethereum.
- Other pending ETF decisions include Solana, XRP, Litecoin, and HBAR, facing uncertain approval timelines.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on a proposal from Franklin Templeton to launch a Bitcoin and Ethereum exchange-traded fund (ETF).
Initially scheduled for a ruling, the decision is now deferred to January 6, 2025, with a possibility of further extension. This postponement allows the SEC more time to thoroughly review the complexities involved in the proposed rule change.
This document, published on the SEC’s official website, states that the extended period is necessary to ensure comprehensive consideration of the proposed ETF and the associated regulatory issues.
Such delays are typical of the SEC, especially concerning crypto-related ETFs, reflecting the agency’s cautious approach to new financial products tied to digital assets.
The delay impacts several firms besides Franklin Templeton. For instance, Hashdex has also submitted a proposal for a similar Bitcoin and Ethereum ETF, which has likewise experienced postponements.
The SEC’s pattern of extending decision deadlines on crypto ETFs underscores the challenges of navigating regulatory frameworks for innovative financial products.
Moreover, the SEC is reviewing other ETF applications for cryptocurrencies like Solana, XRP, Litecoin, and HBAR. These reviews are particularly challenging due to the relatively smaller market caps of these coins compared to Bitcoin and Ethereum.
In addition to specific crypto ETFs, the SEC is also dealing with applications related to options for existing Bitcoin and Ethereum ETFs, which have faced similar delays. However, a recent approval was granted to BlackRock’s IBIT, which launched successfully.
These regulatory processes and delays could extend into a new administrative period following recent political changes.
With President Trump’s victory, it is anticipated that SEC Chairman Gary Gensler may resign, potentially introducing an interim chair and affecting the timeline and outcomes of pending ETF applications.
