The United States Securities and Exchange Commission (SEC) has decided to put the decision power in the hands of the public with regard to Franklin Templeton and Hashdex’s spot Bitcoin ETF application. Markedly, the agency is requesting feedback from members of the public on whether to approve or disapprove the filing.
According to the filing made by the agency, it wants to know what the public thinks about manipulation and fraud with respect to Franklin Templeton’s application. Also, the SEC seeks to understand the fund’s relationship with American cryptocurrency exchange Coinbase which will end up as the ETF’s custodian when it is finally approved.
No Decision on Spot Bitcoin ETFs
The SEC stated that “The Commission is providing notice of the grounds for disapproval under consideration,” in addition to analyzing whether the application is consistent with the requirement that “the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.'”
This comes just a few weeks after the SEC moved to delay its decision on the proposed fund which was first filed in September. Franklin Templeton plans to have shares of the Bitcoin ETF listed and traded on the Cboe BZX Exchange. Hashdex, on the other hand, proposed to convert its New York Stock Exchange-listed ETF to a partial spot product.
SEC is Moving Too Fast
On the first delay of its decision, the regulator mentioned that it needs more analysis and is already “instituting proceedings” to do so. The SEC pointed out the fact that “Institution of proceedings” does not directly mean that the agency has reached a decision on the application.
The new development met with mixed reactions from experts and top crypto players. Some of these analysts think that the regulator might be moving too fast. The delay on Franklin Templeton and Hashdex’s spot Bitcoin ETF approval is one of the many that the crypto industry has seen in the last few months.
SEC Postpones Decisions on Multiple Spot Bitcoin ETFs
In September, the SEC postponed its decision on Valkyrie spot Bitcoin ETF application to around October including that of BlackRock, Fidelity, WisdomTree, Invesco, VanEck, and Bitwise. Towards the end of the same month, the regulator further delayed its decision on the investment asset management firm’s proposed change.
Similarly, ARK Investment Management and 21Shares had the decision on their joint BTC ETF postponed by the SEC.