Traditional Finance’s interest in the crypto industry continues to grow as one of the world’s largest asset managers, Franklin Templeton, has joined the Spot Bitcoin ETF race following its application with the US Securities and Exchange Commission (SEC).
Templeton becomes the twelfth financial institution to apply to offer a Spot Bitcoin ETF, joining the likes of fellow asset managers BlackRock, ARK Invest, Grayscale, and WisdomTree.
Like others, Templeton, with a portfolio of over $1.4 trillion in assets under management (AuM), aims to offer institutional investors the opportunity to invest directly in Bitcoin. The “Franklin Bitcoin ETF” will be listed and traded on the Cboe BZX Exchange, with Coinbase acting as custodian of the fund’s Bitcoin holdings.
However, Templeton’s application still has a long way to go in the bureaucratic process of the SEC. The Commission must first list the application in the Federal Register before proceeding. The overall review process has a 240-day window for the regulator to approve or deny the application.
Most applicants for Spot Bitcoin ETFs have already passed the first 45-day deadline, with the Commission choosing to delay its decision on the ETF applications of BlackRock, WisdomTree, Invesco, Fidelity, Valkyrie, VanEck, and Bitwise. The SEC’s next deadline for any of these applications is October 16, but the Commission can choose to delay its decision once again.
Following Templeton’s application, the President of ETF Store, Nate Geraci, stated that some of the world’s largest asset managers “believe it’s worth their time” and that Bitcoin is not a scam. Geraci suggests that the institutional interest should pique people’s attention and curiosity rather than skepticism about the future of cryptocurrencies.
According to former BitMEX CEO Arthur Hayes, these asset managers are getting involved in Bitcoin because they want to become the “crypto gatekeepers” and have total control over the industry when cryptocurrencies gain mainstream adoption.
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