Asset management company Franklin Templeton has filed an application with the United States Securities and Exchange Commission (SEC) to launch a Bitcoin exchange-traded fund (ETF). The company submitted its S-1 registration statement on September 12, following the SEC’s recent delays in deciding on spot ETF applications from several other firms.
The decision on Franklin Templeton’s application is scheduled for October 16. If approved, the fund will be structured as a trust and will trade on the Cboe BZX Exchange. Coinbase will act as the custodian for the Bitcoin (BTC) held by the fund, while the Bank of New York Mellon will serve as the cash custodian and administrator.
The delay in approving spot ETF applications has caused growing regulatory uncertainty in the digital asset market. In its application, Franklin Templeton explicitly highlighted the potential risks associated with regulatory developments, stating that adverse legislative or regulatory actions could significantly impact the value of Bitcoin or the shares of the ETF.
Franklin Templeton’s application comes in the wake of a court ruling on August 29, which stated that the SEC must consider Grayscale’s application to convert its Bitcoin futures ETF into a spot ETF. Additionally, on August 31, the SEC announced further delays in deciding on spot ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco.
Franklin Templeton is a significant asset manager with $1.5 trillion in assets under management. The company’s decision to seek approval for a Bitcoin ETF demonstrates its growing interest in the cryptocurrency market and its recognition of the potential value within the industry.
The news of Franklin Templeton’s application comes at a time when the price of Bitcoin is experiencing strong growth. At the time of writing, the price of BTC was up 4.11% and continuing to rise rapidly. This positive price movement may further enhance the prospects for the approval of a Bitcoin ETF by the SEC.
The SEC’s decision on Franklin Templeton’s application will be closely watched by industry participants and investors. If approved, the ETF could provide a regulated and accessible investment vehicle for institutional and retail investors wanting exposure to Bitcoin. This could also pave the way for greater mainstream adoption of cryptocurrencies and contribute to the further growth of the digital asset market.
As this is a developing story, additional information will be added as it becomes available. The outcome of Franklin Templeton’s application will have significant implications for the cryptocurrency industry and the broader financial markets, highlighting the evolving regulatory landscape and the increasing recognition of Bitcoin as a legitimate asset class.
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