SEC Potentially Approves Bitcoin Spot ETF In Early 2024

US regulators have the potential to approve Bitcoin ETF. (Photo; Doc. CryptoTimes)

JAKARTA - The crypto market has received new hopes with the possible approval of the Bitcoin spot Exchange Trade Fund (ETF) in the United States. The US Securities and Exchange Commission (SEC) has provided updates regarding a number of Bitcoin spot ETF submissions, including from Franklin Templeton and Hashdex. This indicates that the US SEC is preparing to make a final decision in early 2024.

In a surprising move, the US SEC decided to postpone decision making regarding the Bitcoin spot ETF proposed by Franklin Templeton. The attention center is now turning to the next deadline. More importantly, the US SEC provided an update on Franklin Templeton long before the official deadline on January 1, 2023.

Previously, CoinGape reported that the US SEC requested public input regarding the Franklin Templeton spot ETF filing. In an order released on November 28, 2023, the agency said it was starting the process to determine whether the changes to the proposed rules to register Franklin Bitcoin ETF should be approved or rejected.

This is in line with the postponement of decision-making on other Bitcoin ETF submissions, including from Blackrock and Fidelity. Bloomberg analyst James Seyffart believes that there is more than it looks like regarding the accelerated update to Franklin Templeton's filing.

Following the announcement of the delay on Franklin, the SEC also provided a similar update on Hashdex's ETF filing. The regulator led by Gary Gensler opened public comments regarding the submission of Hashdex Bitcoin Futures ETF.

According to James Seyffart, the US SEC issued a decision too early regarding the Bitcoin ETF submission from Franklin Templeton and Hashdex. Even so, he assessed that the SEC's move was part of the SEC's preparation to approve a mass ETF proposal in January 2024.

"The postponement to Hashdex almost confirms for me that this is a possible step to draw up each applicant so that it can be approved potential before the January 10, 2024 deadline," said James Seyffart.

However, he warned that approval could simply be given without any direct announcement. Bloomberg analysts also highlighted the possibility of submissions being rejected before the January 10, 2024 deadline. On the other hand, the crypto market is becoming more optimistic with reports regarding Blackrock representatives meeting with US SEC officials regarding ETF spot submissions.

Additional information, the spot's Bitcoin ETF is considered a simpler and more efficient way to invest in crypto markets, as investors don't have to worry about storage, security, or liquidity costs. Bitcoin spot ETF is also expected to increase Bitcoin adoption and demand among institutional and retail investors.