Reported by The Block, the US SEC said that it wants fresh feedback from the public on whether it should approve or disapprove a spot bitcoin ETF solicited by asset manager Franklin Templeton. The move prompted some analysts to note that the regulator appeared to be moving quickly.
The SEC said it wants more analysis and is "instituting proceedings" to do so. The regulator asked commenters on Tuesday about concerns regarding manipulation and fraud, as well as the fund's relationship to Coinbase, which would be the custodian if the ETF garners approval.
"The Commission is providing notice of the grounds for disapproval under consideration," it wrote, saying it wanted to analyze whether the application is consistent with the requirement that "the rules of a national securities exchange be 'designed to prevent fraudulent and manipulative acts and practices' and 'to protect investors and the public interest,'" the agency said in the filing.
"Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change," it continued.