Franklin Templeton Files for Spot Bitcoin ETF
Global investment firm Franklin Templeton has submitted a filing for a spot bitcoin exchange traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This move puts Franklin Templeton in the company of other major players like BlackRock and Fidelity who are also seeking to launch the first bitcoin ETF.
Key Takeaways:
- Franklin Templeton, managing $1.45 trillion in assets, has filed for a bitcoin ETF with the SEC for the first time.
- Coinbase will serve as the custodian for the bitcoin held by the fund, with pricing based on the Chicago Mercantile Exchange (CME) reference rate.
- Similar applications have been made by BlackRock and Fidelity, reflecting the growing interest in a spot bitcoin ETF.
Details of the Franklin Templeton ETF Filing:
The filing from Franklin Templeton outlines terms similar to recent applications in the finance industry. Coinbase is designated as the custodian for the fund’s bitcoin holdings. The ETF is planned to be traded on Cboe BZX Exchange, with pricing based on the CME’s CF Bitcoin Reference Rate–New York Variant.
Notably, this marks Franklin Templeton’s first foray into creating a bitcoin ETF product, despite managing significant assets. CEO Jenny Johnson’s previous comments on bitcoin and blockchain add further interest to this development.
Spot Bitcoin ETF Approval Outlook
Following BlackRock’s initiation of new spot bitcoin ETF filings, anticipation has grown for potential approvals in the market. BlackRock’s stature and influence in the financial sector have heightened expectations. Fidelity and VanEck have also submitted similar applications, with SEC decisions on these ETFs postponed until October.
Grayscale’s recent legal win in the case involving the Bitcoin Investment Trust (GBTCUSD) adds complexity to the ETF landscape. While the SEC must clarify its stance on transitioning GBTC to an ETF, this ruling does not guarantee approval for other ETFs.
SEC Chair Gary Gensler’s comments indicate ongoing evaluation of bitcoin exchange-traded products. The SEC is reviewing multiple filings and awaiting staff recommendations on the matter.