Thursday, July 25, 2024

SEC Delays Franklin Bitcoin ETF Approval; Joint Approval for All ETFs Likely.

In a surprising move, the Securities and Exchange Commission (SEC) issued its decision on an application nearly 30 days ahead of the previously announced deadline. Even though it might not be bad news, it appears to support one SEC claim.

All Bitcoin ETFs might be authorized simultaneously.

Franklin is one of the final two applicants for the Spot Bitcoin ETF, and the SEC made its decision on him in a filing on Tuesday. The only two organizations slated to get their decisions ahead of the rest of the applicants were Hashdex and Franklin. Their deadline was January 1, 2024; if the SEC had decided to postpone its decision at that point, it would have taken it a little longer than nine days to release its next ruling.

This would have impeded the regulatory body’s efforts to simultaneously approve each Spot BTC ETF application. The Commission is taking this action to ensure that neither applicant will benefit from a first-mover advantage in the event that not all applications are approved at the same time.

Attorney and cryptocurrency enthusiast Scott Johnson provided an explanation of this, saying,

The problem was that Global X had a comment window that closed on December 29. Thus, the SEC was forced to take this action if they wished to approve everything at once. If not, Friday would have been the final working day before the Hashdex/Franklin deadline, marking the end of the Global X period. There is not enough time to grant approval.

James Seyffart, an analyst with Bloomberg ETFs, also reiterated on X, formerly Twitter, that Hashdex’s application delay indicates that the SEC is probably preparing to approve all spot BTC ETF applications by January 10, 2024.

This date is predicted to mark the start of the next bull market when institutional and individual investors pour money into the market to purchase the recently introduced ETFs.

The Standard Chartered Bitcoin goals remain unaltered.

The Standard Chartered bank team, under the direction of Geoff Kendrick, predicted back in April of this year that the price of Bitcoin would probably hit $100,000 by the end of 2024. The ETFs, according to the team, would serve as the spark.

The bank and Kendrick’s team recently reaffirmed this viewpoint, stating that the goals are still the same because everything is still in place. He continued by saying that, compared to April, Bitcoin now commands a market share of well over 50% of all cryptocurrencies.

This implies that in just 13 months, the price of bitcoin would need to increase by 168%. Moreover, considering the current circulating supply of 19.55 million BTC, the overall market capitalization of the cryptocurrency would increase to $1.955 trillion when 1 BTC is priced at $100,000.

This is a pretty improbable event because it exceeds the market capitalization of the whole cryptocurrency market at the moment, as well as the market capitalization of the majority of commodities and stocks, with the exception of Microsoft and Apple.

Nevertheless, it will turn out to be a very optimistic season for Bitcoin, given the upcoming circumstances and the increase in popularity.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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