Franklin Templeton Files 64th Alt/Meme Coin ETF: Implications for SEC Approval
Franklin Templeton recently submitted its filing for an alt/meme coin exchange-traded fund (ETF), marking another important step in the evolving landscape of cryptocurrency investments. This filing is the 64th of its kind currently awaiting approval from the U.S. Securities and Exchange Commission (SEC). Analysts and cryptocurrency enthusiasts are watching closely, hopeful that the SEC may soon begin approving alt-coin ETFs, especially in light of recent political developments, including former President Trump’s return to prominence in politics and potential regulatory shifts.
Recent Developments in ETF Filings
James Seyffart, an analyst at Bloomberg Intelligence, provided insights on the latest crypto-spot ETF developments. Despite a recent decision by the SEC to postpone actions on several prominent altcoin ETF filings—including Litecoin, Solana, XRP, and Dogecoin—he found that the odds for approval remain relatively high. Seyffart reiterated that this kind of postponement is a standard procedure within the agency, particularly as the SEC awaits the confirmation of Paul Atkins as its new Chair.
The confirmation timing for Atkins is critical as the SEC faces ongoing challenges, notably its appeal related to the Ripple case. The agency has filed an appeal against a ruling concerning the Programmatic Sales of XRP, with Ripple needing to submit its reply brief by April 16. This timeline creates potential scenarios where SEC decision-making could be influenced by the confirmation of a new Chair prior to this deadline.
Action and Agency Dynamics
Seyffart emphasized that an internal SEC vote, rather than the Chair’s decision alone, will determine the course of action regarding the Ripple appeal. At least three Commissioners must participate in such a vote. There is speculation among legal analysts that the possibility of an appeal withdrawal may either lead to significant developments before Ripple’s filing deadline or could strengthen the case for XRP-spot ETF approvals.
Adding to the optimism, pro-crypto lawyer Fred Rispoli suggested that a resolution or significant movement in the SEC v. Ripple case may occur before the April 16 deadline, underscoring the possibility of an informal agreement behind closed doors. He noted that ongoing dialogues between the SEC and Ripple could potentially pave the way for easing regulatory barriers.
XRP Market Trends
Investor sentiment surrounding XRP has seen a noticeable uptick following news of potential SEC appeal withdrawals. On March 11, XRP’s price experienced a substantial rally, increasing by 7.44% to reach $2.1718 after a prior drop. This rally demonstrated XRP’s resilience compared to broader market trends, with optimism regarding the approval of an XRP-spot ETF fueling demand.
Key factors are currently influencing XRP’s price outlook:
- A push toward considering XRP as a U.S. Strategic Reserve Asset could improve market conditions.
- If the SEC decides to withdraw its appeal, analysts believe XRP could potentially exceed its all-time high of $3.55.
- However, continued legal uncertainty could create risks, dragging prices closer to $1.50.
- Lastly, institutional interest driven by an approved XRP-spot ETF could eventually drive prices towards $5. ### Bitcoin’s Market Movements
Simultaneously, Bitcoin is also navigating a complex market landscape. On March 11, BTC ended a five-day losing streak with a notable increase of 5.50%, closing at $82,946. The volatility stemmed from concerns over trade tensions, mixed signals from the current administration, and disappointing remarks from former President Trump regarding Bitcoin purchases.
Senator Cynthia Lummis has been a pivotal figure in reigniting hopes for legislative support for Bitcoin, having reintroduced the Bitcoin Act. This proposed legislation aims to authorize the U.S. government to accumulate one million BTC over five years, with a mandatory holding period intended to bolster the nation’s economic foundation.
Despite this renewed momentum, the BTC-spot ETF market has reported significant outflows, which have persisted for three consecutive sessions, totaling over $393 million. Institutional demand appears hampered as a result of recession fears and market volatility, which has put additional pressure on Bitcoin prices.
Conclusion: Looking Ahead
As regulatory landscapes shift and market dynamics evolve, the coming weeks will be critical for both altcoin and Bitcoin ETF approvals. Investors and analysts alike are keeping a close eye on the SEC’s actions, anticipated regulatory changes under new leadership, and the overarching implications these factors may have on market sentiment and prices. Whether through significant legal rulings or legislative initiatives, the cryptocurrency space is poised for volatile yet potentially transformative changes in the near future.
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