Franklin Templeton Seeks Approval for Spot Bitcoin ETF
Franklin Templeton, a California-based financial services firm managing over $1.4 trillion in assets, has joined the growing list of companies applying for approval of a spot bitcoin exchange-traded fund (ETF) from the U.S. Securities and Exchange Commission (SEC). The company submitted its application to the SEC on Tuesday, with plans to use Coinbase as the custodian for the fund’s bitcoin holdings and Bank of New York Mellon for cash storage.
Optimism Surrounds Bitcoin ETFs
The interest in bitcoin ETFs from major asset managers, along with the SEC’s willingness to review applications from established market players, has sparked optimism in the crypto industry. While the SEC has approved ETFs that hold bitcoin futures, it has yet to approve a spot bitcoin ETF. In August, the regulatory body postponed its decisions on seven applications, citing the need for thorough assessment of each proposal.
Potential Approval of Multiple Spot Bitcoin ETFs
JPMorgan suggests that following Grayscale Investments’ court victory over the SEC, the regulatory body may have to approve multiple spot bitcoin ETFs simultaneously. Grayscale recently won an appeal overturning the SEC’s refusal to allow the conversion of its bitcoin trust into an ETF.
Hot Take: Franklin Templeton Joins Growing List of Bitcoin ETF Applicants
Franklin Templeton is making a move to secure approval for a spot bitcoin ETF from the SEC. This comes as other major asset managers and market players also seek to launch their own bitcoin ETFs. While the SEC has been cautious in approving spot bitcoin ETFs due to concerns about fraud and market manipulation, recent developments have brought optimism to the crypto industry. If approved, Franklin Templeton’s choice of Coinbase as custodian for bitcoin holdings and Bank of New York Mellon for cash storage showcases the growing integration of traditional financial institutions with the crypto market.
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