The SEC Requests Public Feedback on Bitcoin ETF Application from Franklin Templeton
The Securities and Exchange Commission (SEC) has announced that it is seeking public feedback on whether it should approve or disapprove a spot bitcoin exchange-traded fund (ETF) proposed by asset manager Franklin Templeton. This comes just weeks after the SEC delayed its decision on the fund. The regulator wants more analysis and has initiated proceedings to gather additional information. The SEC specifically asked for comments regarding concerns about manipulation, fraud, and the fund’s relationship with Coinbase, the proposed custodian. The agency is examining whether the application aligns with regulations designed to prevent fraudulent practices and protect investors.
Institution of Proceedings Does Not Indicate Conclusions
The SEC clarified that instituting proceedings does not imply any conclusions have been reached. It merely signifies that interested parties are encouraged to provide comments on the proposed rule change. Franklin Templeton filed for the bitcoin ETF in September, aiming to list and trade shares on the Cboe BZX Exchange. Other asset managers, including BlackRock and Fidelity, have also submitted applications for spot bitcoin ETFs.
SEC to Solicit Feedback on Hashdex Bitcoin Futures ETF Application
Additionally, the SEC will institute proceedings and solicit public feedback on an application for the Hashdex Bitcoin Futures ETF. This proposal seeks to convert its existing exchange-traded fund listed on the New York Stock Exchange into a partial spot product. Comments on both funds are due within 21 days, followed by a two-week rebuttal period. So far, the SEC has not approved any spot bitcoin funds and has consistently delayed all applications received for such products.
Speculation Surrounding SEC’s Actions
Analysts have noted that the SEC’s recent actions regarding the Franklin Bitcoin ETF indicate a sense of urgency. Some speculate that the regulator may be aiming to align the timelines of all spot bitcoin ETF approvals. This could potentially lead to a wave of approvals in early January. The move could also be an effort to ensure that the comment period ends before January 10, facilitating simultaneous approval for all applicants.
Hot Take: SEC Seeks Public Input on Franklin Templeton’s Bitcoin ETF Application
The SEC has requested public feedback on whether it should approve or disapprove the spot bitcoin ETF proposed by Franklin Templeton. Seeking additional analysis and input, the regulator is particularly interested in addressing concerns related to manipulation, fraud, and the fund’s relationship with Coinbase. Instituting proceedings does not indicate any conclusions but encourages interested parties to provide comments. In parallel, the SEC will also solicit feedback on the Hashdex Bitcoin Futures ETF application. With speculation swirling, analysts suggest that the SEC’s swift actions may be aimed at aligning approval timelines for all spot bitcoin ETFs and facilitating simultaneous approvals in early January.
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