Introduction
The Securities and Exchange Commission (SEC) has requested public comments on the proposed Bitcoin exchange-traded funds (ETFs) by Franklin Templeton and Hashdex. This marks a significant step forward in the potential approval of Bitcoin ETFs in the United States.
The SEC has been hesitant to approve Bitcoin ETFs in the past due to concerns about market manipulation and lack of regulatory oversight. However, the growing mainstream acceptance of cryptocurrency has led to increased pressure on the SEC to approve such funds.
Franklin Templeton ETF
Franklin Templeton’s proposed ETF, called the Franklin Bitcoin ETF Trust, would invest in Bitcoin and would be listed on the Chicago Board Options Exchange. The ETF would be managed by Franklin Advisers, Inc. and would track the performance of the CME CF Bitcoin Reference Rate.
Hashdex ETF
Hashdex’s proposed ETF, called the Hashdex Nasdaq Crypto Index ETF, would invest in a basket of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. The ETF would be listed on the Nasdaq stock exchange and would track the performance of the Nasdaq Crypto Index.
SEC Request for Public Comments
The SEC has requested public comments on a range of issues related to the proposed ETFs, including the potential for market manipulation, the liquidity of the underlying assets, and the custody of the assets. The public comment period will be open for 21 days after the proposals are published in the Federal Register.
Conclusion
The SEC’s request for public comments on the proposed Bitcoin ETFs by Franklin Templeton and Hashdex is a positive development for the cryptocurrency industry. While there is no guarantee that the ETFs will be approved, the fact that the SEC is considering them is a step in the right direction. The public comment period provides an opportunity for stakeholders to voice their opinions and concerns, which will help inform the SEC’s decision-making process.
