SEC Delays Crypto ETF Decisions: BlackRock and Franklin Templeton Left Waiting (Updated September 2025)

Why Did the SEC Hit the Pause Button?

The Securities and Exchange Commission (SEC) announced on September 12, 2025, that it needs more time to evaluate the proposed spot bitcoin ETFs from BlackRock and Franklin Templeton. This isn’t the first delay—the SEC has a history of kicking the can down the road when it comes to crypto products. But this time, the stakes are higher. With institutional demand for crypto exposure at an all-time high (CoinMarketCap data shows a 47% surge in Bitcoin institutional holdings since Q1 2025), the delay has left traders antsy.

BlackRock’s Third Attempt: Will the Charm Work?

BlackRock, the world’s largest asset manager, has been relentless. After two rejected applications in 2023 and 2024, their 2025 proposal includes unprecedented surveillance-sharing agreements with major exchanges like BTCC and Coinbase. "They’re trying to address the SEC’s manipulation concerns head-on," noted a BTCC market analyst. Still, the SEC’s skepticism runs deep—remember the 2022 Terra/Luna collapse? Regulators haven’t forgotten.

Franklin Templeton’s Unique Angle

While BlackRock plays the compliance card, Franklin Templeton is betting on innovation. Their ETF proposal integrates real-time blockchain analytics from Chainalysis, a feature the SEC reportedly finds "intriguing but untested." If approved, it could set a new standard for transparency. TradingView charts show Franklin’s crypto-related stocks (like $BEN) gained 3.2% post-announcement—proof that Wall Street’s watching closely.

The Ripple Effect on Crypto Markets

Bitcoin’s price dipped 1.8% within an hour of the SEC’s delay news (per CoinGecko), but recovered half the loss by noon. "This isn’t a ‘no’—it’s a ‘not yet,’" tweeted crypto influencer Lark Davis. Historical data supports this: When the SEC delayed VanEck’s ETF in 2021, BTC rallied 22% three months later. Still, futures on BTCC show traders are hedging bets, with put options up 15%.

What’s Next for ETF Hopefuls?

The new deadline is November 14, 2025. Until then, expect:

• More amendments: Both firms may tweak custody solutions (likely partnering with firms like Fidelity Digital Assets).
• Lobbying push: Crypto advocacy groups are already planning DC fly-ins.
• Volatility: "Alts like ETH and SOL could see sympathy swings," warns the BTCC team.

Expert Take: A Marathon, Not a Sprint

"The SEC’s caution is frustrating but rational," says former CFTC chair Timothy Massad. He points to the 75% failure rate of commodity ETFs in their first decade. Still, with Grayscale’s legal win last year forcing the SEC to reconsider rejections, the tide may be turning. Personally? I’d bet on a 2026 approval—regulators love round numbers.

FAQ: Your Burning Questions Answered

How many Bitcoin ETF applications are pending?

As of September 2025, there are 7 active applications, including from Valkyrie and Bitwise.

Does this delay affect Ethereum ETFs?

Indirectly. The SEC’s stance on Bitcoin ETFs often sets precedent for other crypto assets.

Can retail investors access Bitcoin elsewhere?

Yes—through futures-based ETFs (like BITO), BTCC’s spot market, or trusts like GBTC (though premiums vary wildly).