Asset manager Franklin Templeton has joined the race to issue America’s first exchange-traded fund (ETF) that invests directly in bitcoin. The company applied with the U.S. Securities and Exchange Commission (SEC), following in the footsteps of other major investment firms like Fidelity and Blackrock.
Franklin Templeton Files for Spot Bitcoin ETF With U.S. SEC
California-based financial services firm Franklin Templeton, which manages over $1.4 trillion in assets, has become the latest investments powerhouse to try to obtain approval for a spot bitcoin ETF from the U.S. securities regulator.
The company filed its application with the SEC on Tuesday. If it gets the green light from the Commission, Franklin plans to use leading U.S. crypto exchange Coinbase as custodian for the fund’s bitcoin holdings and Bank of New York Mellon for cash, Bloomberg detailed in a report.
Interest in bitcoin ETFs from leading asset managers as well as the SEC’s decision to accept for review a number of applications from established market players like Blackrock, after rejecting other attempts in the past, have become reasons for optimism in the crypto space this year.
The SEC approved ETFs that hold bitcoin futures in 2021 but it’s yet to give the nod to a spot bitcoin ETF. At the end of August, the regulatory body postponed its decisions on seven applications — those of Invesco Galaxy, Wisdomtree, Bitwise, Vaneck, Fidelity’s Wise Origin, Blackrock, and Valkyrie.
The Securities Commission explained the move with the need for sufficient time to thoroughly assess the submitted proposals before it issues its verdict. In earlier rejections, the SEC cited concerns about fraud and market manipulation.
According to global investment bank JPMorgan, the SEC may have to approve several spot bitcoin ETFs at once after Grayscale Investments’ court win over the regulator. Last month, a federal appeals court overturned the SEC’s refusal to allow Grayscale to convert its bitcoin trust into an ETF.
Do you think the U.S. SEC will eventually approve the spot bitcoin ETF applications of Franklin Templeton and other asset managers? Share your expectations in the comments section below.