24 Sep, 2023

Franklin Templeton Files for Spot Bitcoin ETF

Susan Oh
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Susan Oh is a leading figure in the integration of AI and blockchain for social good, serving as the CMO for BeOmni by Beyond Imagination and a civic technologist dedicated to creating scalable solutions. She is a board member of the Blockchain Commission For Sustainable Development supported by the UN GA Office of Partnerships, and...
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Franklin Templeton Files for Spot Bitcoin ETF

TL;DR

  • Franklin Templeton has announced its intention to debut a Spot Bitcoin ETF, entering the competition alongside other financial titans.
  • The ETF seeks to reflect Bitcoin’s value, with Coinbase Custody Trust Company serving as its custodian.

$1.5T Asset Manager Enters the Race for the First Spot Bitcoin ETF

Franklin Templeton, a prominent asset management firm, applied with the SEC to initiate a spot Bitcoin exchange-traded fund. Franklin Templeton is the fourth largest company to try and open a spot in Bitcoin ETF this year. 

This S-1 registration statement follows the SEC’s postponement on August 31 of decisions regarding spot ETF applications from companies like Fidelity, Invesco, and WisdomTree. 

Franklin Templeton Flies for Spot Bitcoin ETF
Franklin Templeton Investments.

Additionally, on August 29, a court mandated that the SEC evaluate Grayscale’s request to transform its Bitcoin futures ETF into a spot ETF. 

The fund is set to be organized as a trust per the filing. Coinbase would safeguard the BTC, while the Bank of New York Mellon would act as the cash custodian.

The fund’s shares are proposed to be listed on the Cboe BZX Exchange. The SEC has until October 16 to decide on the application. 

The Race for The First Spot Bitcoin ETF

Major financial giants like BlackRock, Fidelity, VanEck, and Franklin Templeton have joined the competition to list the first spot-traded Bitcoin ETF in the US. 

Although the SEC gave the green light to a Bitcoin-linked Futures ETF back in 2021, the latest submissions are centered around a spot Bitcoin ETF. 

With Grayscale’s recent legal win against the SEC, the consensus is growing that these investment funds might soon gain approval. 

Being the world’s largest asset manager, BlackRock’s involvement has encouraged numerous other institutions to revisit their applications. 

Historically, many of these asset managers had to either pull back their applications or endure denials from the SEC. Here’s a complete look at the primary contenders: 

Following Grayscale’s recent legal triumph, Bloomberg’s ETF analysts have increased their anticipated approval odds for a spot Bitcoin ETF from 65% to 75%.

Is a Spot Bitcoin ETF Game-Changing for Crypto? 

Introducing a Bitcoin ETF in the US is poised to enhance the mainstream credibility and adoption of Bitcoin investing. 

In 2020 and 2021, notable publicly traded companies like Square and Tesla added Bitcoin to their balance sheets, propelling its adoption. 

Yet, many traditional investors still perceive crypto as a volatile venture and merely a fad.

$1.5T Asset Manager Enters the Race for the First Spot Bitcoin ETF
$1.5T Asset Manager Enters the Race for the First Spot Bitcoin ETF.

The SEC’s endorsement of a Bitcoin ETF would allow institutional investors to speculate on Bitcoin’s price. This would integrate Bitcoin into Wall Street, allowing it to be traded alongside familiar assets like shares, gold, oil, etc.  

Such a move could potentially drive a significant surge in Bitcoin’s value, bringing the top crypto to another level. 

Also, introducing a spot Bitcoin ETF would open the gates for ETFs using other cryptocurrencies like Ether or XRP. Could this be one of the biggest events in crypto’s history? 

Absolutely!