SEC Seeks Public Input on Franklin Templeton’s Bitcoin ETF Proposal
The Securities and Exchange Commission (SEC) is seeking public input on Franklin Templeton’s proposed spot bitcoin Exchange-Traded Fund (ETF). This unexpected request for feedback comes after the SEC had previously postponed its decision, indicating a change in approach.
The SEC is concerned about potential market manipulation and fraud and is particularly interested in the fund’s relationship with Coinbase, the proposed custodian. The agency wants to ensure that the rules of a national securities exchange are strong enough to prevent fraudulent activities and protect investors.
A Closer Look at the Franklin Bitcoin ETF
Franklin Templeton filed for the Franklin Bitcoin ETF in September. If approved, the fund’s shares would be listed and traded on the Cboe BZX Exchange. Unlike futures-based products, this ETF would provide investors with more direct exposure to Bitcoin.
Parallel Developments with Hashdex
The SEC is also focusing on Hashdex’s application for a Bitcoin Futures ETF. Hashdex aims to convert its current exchange-traded fund into a partial spot product, aligning with the growing interest in integrating spot Bitcoin offerings into traditional investment products.
Public Participation Deadline
The SEC has set a 21-day deadline for public comments on both the Franklin and Hashdex proposals, followed by a two-week rebuttal period. This open invitation for public feedback reflects the SEC’s cautious yet progressive approach toward integrating cryptocurrencies into mainstream financial products. The outcome of this process could significantly impact the future of bitcoin ETFs in the US market, where no spot bitcoin fund has been approved by the SEC.
Hot Take: SEC Seeks Public Input on Franklin Templeton’s Bitcoin ETF Proposal
The Securities and Exchange Commission (SEC) has surprised the cryptocurrency market by requesting public input on Franklin Templeton’s proposed spot bitcoin Exchange-Traded Fund (ETF). This sudden shift in approach follows the SEC’s previous decision to postpone its ruling. The agency is particularly concerned about potential market manipulation and fraud, focusing on the fund’s relationship with Coinbase as the proposed custodian. This move highlights the SEC’s commitment to preventing fraudulent activities and safeguarding investors’ interests. The deadline for public comments on both the Franklin and Hashdex proposals is expected to significantly influence the future of bitcoin ETFs in the US market, which has yet to see approval for a spot bitcoin fund.
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