SEC's Request for Public Feedback on Franklin Templeton and Hashdex Bitcoin ETFs

SEC Requests Public Comments on Franklin Templeton and Hashdex ETF Applications

The United States Securities and Exchange Commission (SEC) has announced that it is seeking public comments on the proposed spot Bitcoin exchange-traded fund (ETF) applications from Franklin Templeton and Hashdex. This move is seen as a significant step towards potential approvals of spot Bitcoin ETFs in early January 2024.

The SEC’s request for comments provides a 35-day open period for feedback on the approval or denial of the Forms 19b-4 submitted by Franklin Templeton and Hashdex. These forms serve as public disclosures sanctioned by the SEC’s Trading and Markets Division.

Key Considerations for Commenters

Commenters are encouraged to provide input on various aspects related to the ETF applications. For Franklin Templeton, this includes potential price manipulation in the Bitcoin market, the company’s surveillance sharing agreement with Coinbase, and the correlation between BTC spot and futures prices.

Hashdex’s proposed fund structure, on the other hand, relies on acquiring BTC from other exchanges on the CME. The SEC is seeking input on the significance of CME’s size in relation to the fund structure and the availability of sufficient liquidity. Commenters are also asked about sponsor Toroso Investments’ calculations regarding BTC prices on regulated and unregulated exchanges.

Early Update Sparks Speculation

The SEC’s decision to seek public comments earlier than expected has sparked speculation among experts. Some believe that this update indicates the SEC’s intention to align applications for potential approvals before the January 10, 2024 deadline. However, these estimations are not definitive timelines for decision-making.

Hot Take: Potential Approval Boosts Bitcoin Price

Bitcoin’s price has experienced a 3% increase, trading above $38,000, following the news of the SEC’s actions. The cryptocurrency has seen three consecutive positive months due to bullish sentiment surrounding the potential approval of spot Bitcoin ETFs.