The United States Securities and Exchange Commission (SEC) is seeking public input regarding the proposed Bitcoin (BTC) exchange-traded fund (ETF) applications submitted by Franklin Templeton and Hashdex.
In a statement released on November 28, the Commission highlighted the next stage in its examination of the spot BTC ETF applications from both companies, following a period of uncertainty spanning several weeks.
The SEC has invited official public comments to inform its decision on whether to grant or deny approval for the spot ETF and its associated Forms 19b-4.
Form 19b-4 is a document endorsed by the Trading and Markets Division of the SEC, intended for public disclosure of specific details related to an application prior to potential approval.
Market manipulation concerns linger
As per the announcement, the financial regulatory body is specifically soliciting information related to concerns about market manipulation and fraud. Additionally, attention is directed towards the matter of Coinbase serving as the custodian and the efforts involved in price discovery.
This issue remains persistent, given the SEC’s previous rejections of all spot Bitcoin ETF applications, citing apprehensions about market manipulation. In response, the crypto community has contested this stance, pointing to analogous approvals in other sectors and characterizing Gary Gensler’s market approach as impeding swift development.
“The Commission is notifying of the grounds under consideration for disapproval. According to the regulatory framework, the rules of a national securities exchange should be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.'”
The Commission clarified that initiating any proceedings does not definitively indicate that the SEC has made a decision on ETF-related matters. Instead, it signifies an invitation for interested individuals to submit comments focused on a potential rule change.
This recent development adheres to the customary procedures for ETF applications undergoing SEC review, with the commentary period lasting for 35 days. Both applications were submitted to the Commission in September amidst high optimism, fueled by recent events and a renewed surge of institutional interest in the market.
Optimism grows with new developments
The Hashdex spot Bitcoin ETF is slated for trading on the New York Stock Exchange Arca, while Franklin Templeton’s ETF will find its place on Cboe BZX. The comment period for both applications will extend for 21 days, with an additional two-week window allocated for rebuttals.
Hashdex’s approach involves structuring its ETF as a futures fund, incorporating spot BTC without relying on Coinbase. The company proposes obtaining BTC from various exchanges, including the CME, with an emphasis on pricing.
Across social media platforms, there is a renewed sense of optimism regarding the SEC potentially approving a spot BTC ETF in the near future, signaling a new cycle in the market. The regulator had previously deferred decisions on ETF applications.
The U.S. Securities and Exchange Commission (SEC) is seeking public input on the proposed spot Bitcoin (BTC) exchange-traded fund (ETF) applications submitted by Franklin Templeton and Hashdex.
In a statement released on November 28, the Commission emphasized the commencement of the next phase in the evaluation of spot BTC ETF applications from both companies, following a period of uncertainty lasting several weeks.
To inform its decision on approving or rejecting the spot ETF and its associated Forms 19b-4, the SEC has invited official public comments.
Form 19b-4 is a document sanctioned by the Trading and Markets Division of the SEC, designed for the public disclosure of specific details pertaining to an application before potential approval.