SEC Requests Public Feedback for Franklin Templeton and Hashdex Spot Bitcoin ETFs
The United States Securities and Exchange Commission (SEC) is seeking public opinion on the spot Bitcoin (BTC) exchange-traded fund (ETF) applications of Franklin Templeton and Hashdex. The SEC has requested official public comments to assist in its decision on whether to approve or reject the spot ETF approval and its Forms 19b-4. Market manipulation and fraud concerns, as well as the issue of Coinbase being the custodian and price discovery efforts, are among the key areas of interest for the SEC. The regulator has previously rejected all spot Bitcoin ETF applications due to market manipulation concerns.
Standard Procedures Under SEC Review
This latest development follows standard procedures for ETF applications under review by the SEC. The process will span 35 days, during which interested persons can provide comments geared towards a rule change. Both Franklin Templeton and Hashdex filed their applications with optimism following recent events and renewed institutional interest in the market. Franklin Templeton’s spot Bitcoin ETF will be traded on Cboe BZX, while Hashdex’s will be traded on the New York Stock Exchange Arca. Comments will be due in 21 days, with an additional two-week window for rebuttals.
Renewed Optimism for Spot BTC ETF Approval
There is renewed optimism among crypto enthusiasts that the SEC will approve a spot Bitcoin ETF in the near future. This approval would mark a new cycle in the market. Despite previous delays in making decisions on ETF applications, social media spaces are abuzz with anticipation. Hashdex’s proposed futures ETF structure, which relies on pricing from other exchanges including the CME rather than Coinbase, has garnered attention. However, it remains to be seen whether these developments will sway the SEC’s decision.
Hot Take: SEC Seeks Public Feedback on Bitcoin ETF Applications
The SEC’s call for public feedback on the spot Bitcoin ETF applications of Franklin Templeton and Hashdex indicates a step forward in the regulatory scrutiny of these proposals. The SEC is particularly interested in addressing concerns related to market manipulation, fraud, and the role of Coinbase as custodian. While previous spot Bitcoin ETF applications have been rejected, there is renewed optimism that the SEC may approve these applications, which would have a significant impact on the crypto market. Overall, this development highlights the ongoing efforts to establish a regulated and transparent environment for cryptocurrency investments.
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