The American one Securities and Exchange Commission (SEC) has requested a postponement of applications for Bitcoin (BTC) exchange funds from asset managers Franklin Templeton and Hashdex. Although this may sound like a downer at first, there is a pleasant surprise in this development that proves to be very beneficial for the introduction of a Bitcoin exchange fund in the US market.
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Bitcoin ETFs in the waiting room
Yesterday, the regulator requested a postponement for both Franklin Templeton and Hashdex to make a final decision in their evaluation process. The news came from an unexpected source as the SEC had until January 1 to file a response to both filings.
The SEC has indicated that it wants to seek public input before making a final decision on whether to approve or reject the Franklin Templeton and Hashdex Bitcoin exchange funds. The decision comes just weeks after the committee first requested a postponement for both asset managers.
Responses to both funds must be submitted within 21 days, with a rebuttal period of two weeks.
Regarding Franklin Templeton’s filing, the SEC sought comment on price manipulation in the BTC market as well as the Surveillance Sharing Agreement with Coinbase and the correlation between BTC spot and futures prices.
Hashdex’s proposed fund structure is much more complex than Franklin Templeton’s. The fund will be structured as a futures exchange traded fund (ETF) that holds spot BTC. Instead of relying on an agreement with Coinbase, Hashdex would source Bitcoins from other exchanges on the Chicago Mercantile Exchange (CME) and rely solely on this mechanism to determine the price of Bitcoin.
The SEC has raised questions about the size and available liquidity of the CME. They also want to know how the sponsor Toroso Investments calculates the ratio between the BTC price on the CME and on unregulated exchanges.
Is mass approval of Bitcoin ETFs coming?
Bloomberg ETF analyst James Seyffart wrote yesterday on This is because the comment period for both Franklin Templeton and Hashdex now closes before January 10th.
Previously, analysts estimated a 90 percent chance that the regulator would approve all Bitcoin ETF applications before January 10.
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