Kenne Michael 
In light of the expanding cryptocurrency market, the Securities and Exchange Commission (SEC) has heightened its scrutiny by soliciting public feedback regarding Franklin Templeton’s proposed spot Bitcoin Exchange-Traded Fund (ETF).
The request for feedback is an unanticipated development, given that the SEC had previously delayed its decision, indicating a rapid change in approach.
However, the SEC’s inquiry is motivated by deep-seated concerns regarding the possibility of market manipulation and fraud.
Meanwhile, Coinbase, expected to serve as the custodian should the ETF be approved, is of specific interest to the agency regarding the association of the proposed fund with it.
The SEC’s filing highlighted the criticality of ensuring that the regulations governing a national securities exchange are sufficiently robust to safeguard investors and the public interest while preventing fraudulent activities.
An Analysis of the Franklin Bitcoin ETF
In September, Franklin Templeton submitted an application for the Franklin Bitcoin ETF.
However, the approval would result in the listing and trading of the fund’s shares on the Cboe BZX Exchange.
Other major financial institutions, including BlackRock and Fidelity, have also submitted applications for spot bitcoin (ETFs).
The Franklin Bitcoin ETF distinguishes itself from futures-based products by its potential to offer investors more direct exposure to Bitcoin.
Parallel Developments with Hashdex
The SEC concurrently examines Hashdex’s proposal to establish a Bitcoin Futures ETF.
This proposed fund aims to transform its New York Stock Exchange-listed exchange-traded fund into a partial spot product.
Hashdex’s action is consistent with the increasing trend toward incorporating spot Bitcoin offerings into traditional investment products.
Date for Public Participation
Following a two-week rebuttal period, the SEC has established a 21-day deadline for public comments on the Franklin and Hashdex proposals.
The SEC’s approach to incorporating cryptocurrencies into conventional financial products is characterized by a combination of caution and progress, as evidenced by this public invitation for feedback.
In a sector where the SEC has not yet approved a spot bitcoin fund, the future of bitcoin ETFs in the United States could be significantly impacted by the outcome of this procedure.