Franklin Templeton, a prominent asset manager, has submitted an application to the United States Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF). This move comes after the SEC recently delayed decisions on spot ETF applications from several other firms, including WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco. Additionally, a court ruling stated that the SEC must consider Grayscale’s application to convert its Bitcoin futures ETF into a spot ETF.
According to Franklin Templeton’s application, the proposed fund would be structured as a trust. Coinbase would serve as the custodian for the Bitcoin, while the Bank of New York Mellon would act as the cash custodian and administrator. The fund shares would be traded on the Cboe BZX Exchange. The SEC has until October 16 to make a decision on the application.
In a recent tweet, it was revealed that several major players in the financial industry have also submitted spot ETF applications, including BlackRock, Fidelity, Invesco Galaxy, WisdomTree, VanEck, GlobalX, ARK Invest, Bitwise, and Valkyrie. The combined assets under management of these firms amount to a staggering $17.7 trillion.
Franklin Templeton acknowledged the regulatory uncertainty surrounding digital asset markets in its application. The company stated that adverse legislative or regulatory developments could have a significant negative impact on the value of Bitcoin and the ETF shares.
To ensure accurate valuations, Franklin Templeton plans to partner with CF Benchmarks, a regulated digital asset index provider based in the United Kingdom. CF Benchmarks will provide daily valuations based on data from major exchanges such as Coinbase, Bitstamp, iBit, Kraken, Gemini, and LMAX Digital.
With $1.5 trillion in assets under management, Franklin Templeton is a major player in the financial industry. At the time of writing, the price of Bitcoin had increased by over 4%.
It is important to note that the regulatory landscape for digital assets remains uncertain, and any developments in this area could have a significant impact on the success of Bitcoin ETFs and the overall digital asset markets.
Sources:
– SEC application: https://cointelegraph.com/news/franklin-templeton-files-bitcoin-spot-etf
– Tweet: https://cointelegraph.com/news/franklin-templeton-files-bitcoin-spot-etf
– Related article: https://cointelegraph.com/news/franklin-templeton-files-bitcoin-spot-etf
– CF Benchmarks: https://cointelegraph.com/news/franklin-templeton-files-bitcoin-spot-etf
– Franklin Templeton assets under management: https://cointelegraph.com/news/franklin-templeton-files-bitcoin-spot-etf
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I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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