SEC seeks public input on Franklin Templeton, Hashdex Bitcoin ETFs
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The United States Securities and Exchange Commission has announced the next steps in its consideration of the proposed
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.
SEC extends comment window for Franklin Templeton and Hashdex #Bitcoin ETFs pic.twitter.com/aEYTa5Yg1n
— Daniela (@DeFinanzasYT) November 28, 2023
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.
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