This summary text is fully AI-generated and may therefore contain errors or be incomplete.
The United States Securities and Exchange Commission (SEC) has taken the next steps in evaluating the proposed Franklin Templeton and Hashdex spot Bitcoin exchange-traded fund (ETF) applications. This move has sparked speculation that the SEC’s actions could pave the way for potential approvals of spot Bitcoin ETFs in early January 2024. The SEC has invited written comments on the proposals from the public, providing a 35-day open period for feedback. Commenters are asked to consider various aspects, such as potential price manipulation in the Bitcoin market and the correlation between BTC spot and futures prices. The SEC has also sought input on Hashdex’s fund structure, which is structured as a futures ETF holding spot BTC. The SEC is interested in the significance of the CME’s size in relation to the fund structure and the availability of sufficient liquidity. The proposed rule changes for these ETFs were submitted in late September, and the SEC extended its decision deadline to November 15. ETF expert James Seyffart suggests that this early update from the SEC may indicate that the applications are being aligned for comprehensive approvals for all 12 issuers. While the likely approval date is projected for the first few weeks of January, these estimations are informed predictions based on SEC procedures and do not constitute a definitive timeline for decision-making. Bitcoin’s price was up 3% at the time of reporting, trading above $38,000, and the potential approval of spot Bitcoin ETFs has contributed to bullish sentiment in the market.