Franklin Templeton, a $1.5 Trillion Asset Manager, Launches Bitcoin ETF, Pushing BTC Price Over $26K

Franklin Templeton Joins The Bitcoin ETF Race

Franklin Templeton, a $1.5 trillion asset manager, has recently filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF. The proposed fund, called the Franklin Bitcoin ETF, will primarily consist of Bitcoin assets. To ensure the secure custody of these digital assets, Franklin Templeton has partnered with Coinbase Custody Trust Company, as stated in their filing. If approved by the SEC, the ETF shares will be listed and traded on the Cboe BZX Exchange. The pricing of Bitcoin will rely on the CF Bitcoin Reference Rate from the Chicago Mercantile Exchange. The SEC has extended the review timeline for all Bitcoin Spot ETF applications, with a new decision date set for October 17, 2023.

SEC Might Soon Approve ETF Applications

Various institutional companies, including BlackRock and Fidelity, have submitted applications for spot Bitcoin ETFs. Franklin Templeton joins these firms in anticipating that the SEC could soon approve a spot Bitcoin ETF for public trading. This ETF would allow retail investors to easily access Bitcoin’s price movements through their existing brokerage accounts. It is worth noting that the chances of Spot Bitcoin ETFs receiving approval within this year have increased to 75%. Additionally, Bloomberg ETF analysts predict a 95% chance of approval by the end of 2024. After Grayscale’s recent court win against the SEC, the possibility of an approved Bitcoin ETF this year has significantly improved.

Hot Take: Institutional Adoption of Bitcoin Continues to Rise

Franklin Templeton’s filing for a spot Bitcoin ETF indicates the growing interest and adoption of Bitcoin by institutional investors. With more companies like BlackRock and Fidelity also seeking approval for Bitcoin ETFs, it suggests a positive trend for the cryptocurrency in the financial world. The SEC’s potential approval of these ETFs would provide retail investors with a convenient way to invest in Bitcoin alongside traditional assets. This news has already had an impact on Bitcoin’s price, with it breaking above the $26,000 mark. Analysts believe that the chances of approval for Bitcoin ETFs have significantly increased, with a high possibility of approval in the coming years. Overall, the institutional adoption of Bitcoin is expected to continue rising, bringing more legitimacy and opportunities for investors.