The U.S. Securities and Exchange Commission (SEC) has postponed approval of Franklin Templeton Digital Holdings’ spot Bitcoin ETF.
However, it has called for public consultation on the risks associated with the product.
Franklin’s Bitcoin ETF approval delayed, public input needed
In a recently filed filing, Franklin Temptation Digital Holdings announced its intention to list a spot Bitcoin ETF on a stock exchange, as specified by the SEC.
“As further described in the Notice,7 the Exchange proposes to list and trade the shares of the Fund, Series Franklin Templeton Digital Holdings Trust (“Trust”) pursuant to BZX Rule 14.11(e)(4). It manages the listing and trading of commodity-based trust shares on exchanges.”
Learn more: Where to Trade Bitcoin Futures: A Comprehensive Guide
The SEC has yet to approve Franklin’s product along with all other Bitcoin ETF applicants. U.S. regulators have asked members of the public, called “commenters,” to provide input on the product and its associated risks.
The SEC focuses on broader Bitcoin market dynamics.
Additionally, the SEC asked us to share our views on whether Bitcoin ETFs may be vulnerable to manipulation.
Additionally, commentators were invited to share their views on the broader Bitcoin market and how this may impact the risks associated with spot Bitcoin ETFs.
“What are the views of commentators generally regarding the liquidity and transparency of the Bitcoin market and the potential for manipulation of the Bitcoin market?” He said he had submitted it.
The SEC also wants to know whether the public agrees that Bitcoin is resistant to price manipulation.
“On exchanges, Bitcoin is resistant to price manipulation, and in the sizable regulated market involving spot Bitcoin, other measures exist to prevent fraudulent and manipulative acts and practices “to justify omitting the necessary surveillance sharing agreements.” He said he would.
Learn more: How to Prepare a Bitcoin ETF: A Step-by-Step Approach
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