SEC seeks public input on Franklin Templeton, Hashdex Bitcoin ETFs

Share This Post

The request for public comment are standard for ETFs under review and have an open period of 35 days.

The United States Securities and Exchange Commission has announced the next steps in its consideration of the proposed Franklin Templeton and Hashdex spot Bitcoin (BTC) exchange-traded fund (ETF) bids.

The agency has requested written comments on both proposals to approve or deny the applicants’ Forms 19b-4.

SEC Form 19b-4 is a public disclosure approved by the SEC Trading and Markets Division separately from Form S-1, the offering prospectus subject to Corporate Finance Division approval. The SEC’s requests have an open period of 35 days from their publication in the Federal Register for both comments and responses to comments.

The SEC release on the Franklin Templeton Bitcoin ETF. Source: SEC

The proposed rule changes — effectively applications — that would allow the trading of the ETFs were filed in late September. The Hashdex ETF would be traded on the New York Stock Exchange Arca and Franklin Templeton’s on Cboe BZX. On Nov. 15, the SEC extended its deadline for deciding on the applications.

Related: Binance, CZ settlement with US DOJ ‘bullish for Bitcoin ETF,’ crypto community says

The questions address issues related to potential ETF approval. Commenters are invited to assess the funds’ susceptibility to manipulation and whether or not the exchanges that will host them are of significant size.

Franklin Templeton commenters are further asked to consider price manipulation on the BTC market, the company’s surveillance sharing agreement with Coinbase, which would aid in price discovery and supplement efforts to detect manipulation and fraud, and correlation between BTC spot and futures prices.

Hashdex’s proposed fund structure is more complex than Franklin Templeton’s. Its proposed Hashdex Bitcoin ETF would be structured as a futures ETF that holds spot BTC. Rather than depending on a Coinbase surveillance sharing agreement, Hashdex would acquire BTC from other exchanges on the CME and rely solely on that mechanism for pricing.

The SEC asked whether the CME has significant size in light of the fund structure and whether sufficient liquidity will be available. Finally, commenters are asked about sponsor Toroso Investments’ calculations to determine the relationship between the BTC price on the CME and on unregulated exchanges. The sponsor manages and controls the fund.

Magazine: Bitcoin ETF optimist and Worldcoin skeptic Gracy Chen: Hall of Flame

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Chainlink Rockets 20%: Whale Activity Sparks Break From Bear Trend

Chainlink (LINK) is experiencing significant growth in the cryptocurrency sector, with a 20% increase in value in just one week and a potential change in its long-term trajectory Related Reading: XRP

Cardano Whales Holding $10M ADA Grow Positions by 420%, Time to Buy?

The post Cardano Whales Holding $10M ADA Grow Positions by 420%, Time to Buy appeared first on Coinpedia Fintech News Cardano (ADA) has made a wild move in the past few days and has gained notable

1inch Launches Fusion+, A Cross-Chain Swapping Solution for Decentralized Transactions

1inch, a decentralized finance (defi) platform, has officially rolled out Fusion+, a cross-chain swapping tool designed to enhance the security and simplicity of decentralized transactions Fusion+ by

Ethereum Shorts Hit Record High as Market Leverage Soars

Leveraged short positions in ethereum (ETH) have climbed to unprecedented highs, signaling a bearish tilt in market sentiment as traders brace for intensified volatility Ethereum Bears Bet Big as

XRP To Hit $40 In 3 Months But On This Condition – Analyst

XRP remains one of the crypto market’s current trailblazers rising by 2321% in the past 24 hours Over the last two weeks, the prominent altcoin has recorded a 154% price gain establishing itself as

Cipher Mining: Will It Be Another Standout Bitcoin Miner This Cycle?

Dive into Cipher Mining’s Q3 2024 performance From revenue challenges to strategic investment in fleet upgrades, data center expansion and plans for AI/HPC Discover what’s next for this