The U.S. Securities and Commerce Commission (SEC) has announced that it will be extending the time it takes to make a decision on two pending Bitcoin Exchange Traded Funds (ETFs). This decision comes as a result of concerns about market manipulation.
The first ETF is proposed by GlobalX and would be listed on the Cboe BZX Exchange. The proposal was filed on August 4 and was published for comment on August 23. The SEC initially set a deadline of November 21 to approve, reject, or institute further proceedings on the proposal. However, the SEC has now extended the decision-making process and aims to make a final decision by February 2024.
The second ETF is proposed by Franklin Templeton and follows a similar timeline. The application was submitted on September 26 and published for comment on October 3. The SEC initially set a deadline of November 17 for a decision, but has now extended it to January 1, 2024.
These extensions are not officially referred to as delays by the SEC, but rather as an opportunity for further input and feedback on concerns such as market manipulation and surveillance-sharing agreements. These concerns have long been associated with Bitcoin ETFs.
GlobalX and Franklin Templeton are among several applicants who have filed for Bitcoin ETFs, following BlackRock’s application in June.
It is important to note that the SEC’s decision-making process for ETFs can be lengthy and involves careful consideration of various factors. The extensions in this case are a reflection of the SEC’s commitment to ensuring the integrity and stability of the financial markets.