SEC Seeks Public Feedback on Franklin Templeton, Hashdex Bitcoin ETF Bids
The SEC has requested public input on the proposed spot Bitcoin ETFs from Franklin Templeton and Hashdex currently under agency review.
The SEC frequently asks for commentary when weighing whether to greenlight new ETFs for public trading. Feedback can address issues like susceptibility to manipulation or underlying market size. The public comment period lasts 35 days.
Franklin Templeton aims to list its Bitcoin ETF on Cboe's BZX Exchange. Questions focus on potential Bitcoin price manipulation, the firm's surveillance agreement with Coinbase aiding oversight, and correlations between spot and futures prices.
Hashdex plans a more complex futures-based ETF holding spot Bitcoin to trade on NYSE Arca. The SEC asks whether supporting futures markets offer sufficient liquidity given the structure. It also questions how the sponsor firm calculates Bitcoin's price relationship across regulated and unregulated exchanges.
The SEC extended its deadline to rule on the applications back in November as it gathers more input. While it has rejected over a dozen Bitcoin ETF bids, some experts believe changing dynamics around crypto oversight may shift the agency's stance.
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