SEC Evaluating Franklin Templeton and Hashdex Crypto ETFs, Postpones Decisions on VanEck and ARK Ether ETFs

The U.S. Securities and Exchange Commission (SEC) is currently reviewing applications for crypto exchange-traded funds (ETFs) focusing on spot cryptocurrencies, submitted by Franklin Templeton and Hashdex. Simultaneously, the SEC has announced delays in deciding on VanEck’s and ARK’s applications for ether-based ETFs.

As per official filings with the SEC, Franklin Templeton has put forward a proposal for a bitcoin spot ETF, while Hashdex has submitted an application for a spot ether ETF. The SEC has a maximum timeframe of 240 days from the date of filing appearing in the Federal Register to either approve or reject an ETF application. This timeline would suggest a potential decision date for these proposed funds in late May 2024, with several interim deadlines allowing for additional public input, potentially leading to further delays in the final decision.

Historically, the SEC has utilized the full 240-day period when making decisions. The initial expectations were for a decision on a group of ETF applications from various firms, including BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise, and Valkyrie Digital Assets, to be reached in mid-October, but these decisions have been postponed.

In anticipation of a possible federal government shutdown, the SEC has extended the deadlines for its decisions on spot bitcoin ETF applications submitted by Ark 21Shares and Global X. There is a possibility of further delays before Friday.

In late August, a federal appeals court ruled that the U.S. SEC must reconsider its rejection of Grayscale Investments’ request to convert its Grayscale Bitcoin Trust into an ETF. The court cited inconsistencies in the SEC’s approval of similar bitcoin products as a basis for this decision.