According to Blockworks, the US Securities and Exchange Commission (SEC) has initiated the comment period for Franklin Templeton's spot bitcoin ETF proposal. This move comes earlier than some expected, with the SEC now actively seeking public feedback. New SEC filings could indicate its willingness to close out the comment period on such funds ahead of a potential January ruling on bitcoin ETFs, according to some observers. A recent disclosure reveals that the regulator has chosen to “institute proceedings” to determine whether to approve or deny the Franklin Bitcoin ETF. The filing encourages interested persons to provide comments on the proposed rule change.
The SEC has a 240-day window to consider each of the spot bitcoin ETF proposals from the day it is published in the federal register. During this timeframe, specific deadlines occur at intervals of 45 days, 45 days, 90 days, and 60 days. At each of these milestones, the SEC must file a response either approving, denying, or postponing a decision on the proposal. Franklin Templeton, a traditional finance giant with approximately $1.5 trillion assets under management, entered the bitcoin ETF race in September. The Franklin Bitcoin ETF proposal was published in the federal register on Oct. 3, and the SEC delayed its decision on the product in a Nov. 15 order.
While another filing related to this proposal wasn't due until Jan. 1, the recent order suggests the SEC might be looking to fast-track the process in preparation for a potential mass ruling on spot bitcoin ETFs. Jan. 10 is the date by which the SEC is set to rule on a spot bitcoin ETF proposed by Ark Invest and 21Shares. Industry watchers have pointed to this date, noting the securities regulator could approve all spot bitcoin ETFs at this time to avoid giving any one product a first-mover advantage. The SEC could also choose to deny such proposals, which would be consistent with previous rulings over the last decade. Along with the order related to Franklin Templeton's proposal, the SEC filed a separate order seeking comments on the proposed bitcoin ETF from Brazil-based asset manager Hashdex.
