The United States Securities and Exchange Commission (SEC) has delayed approving a spot Bitcoin ETF for Franklin Templeton Digital Holdings.
However, it has asked for public consultation on the risks associated with the product.
Franklin’s Bitcoin ETF Approval Delay, Public Input Needed
In a recent filing, Franklin Temptation Digital Holdings expressed its intention to list a spot Bitcoin ETF on the stock exchange, as outlined by the SEC.
“As described in more detail in the Notice, the Exchange proposes to list and trade the Shares of the Fund, a series of the Franklin Templeton Digital Holdings Trust (“Trust”), under BZX Rule 14.11(e)(4), which governs the listing and trading of Commodity-Based Trust Shares on the Exchange.”
The SEC has yet to approve Franklin’s product, along with all other Bitcoin ETF applicants. The US regulator has asked the public, referred to as “commenters,” to provide their opinions on the product and the risks associated.
SEC Concentrates on Broader Bitcoin Market Dynamics
Furthermore, the SEC has asked them to share their views on whether the Bitcoin ETF could be susceptible to manipulation.
Additionally, the commenters were invited to share their perspectives on the broader Bitcoin market and how it could influence the risks associated with the spot Bitcoin ETF.
“What are commenters’ views generally with respect to the liquidity and transparency of the bitcoin markets and the bitcoin markets’ susceptibility to manipulation?” the filing stated.
The SEC also wants to know whether the public agrees with the fact that Bitcoin is resistant to price manipulation:
“The Exchange states that bitcoin is resistant to price manipulation and that other means to prevent fraudulent and manipulative acts and practices “exist to justify dispensing with the requisite surveillance sharing agreement” with a regulated market of significant size related to spot Bitcoin.”
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