Franklin Templeton Joins the Race to Launch a Bitcoin Spot ETF
Franklin Templeton, a $1.5 trillion investment giant with an interest in blockchain, is now competing to bring a Bitcoin spot exchange-traded fund (ETF) to the U.S. market. According to a recent S-1 filing with the Securities and Exchange Commission (SEC), the Franklin Bitcoin ETF plans to issue shares representing fractional undivided beneficial interests in its net assets. These assets mainly consist of Bitcoin held by the fund’s custodian, Coinbase Trust, a popular choice among other ETF applicants like BlackRock and ARK Invest. Franklin is the tenth fund awaiting SEC approval to launch a Bitcoin spot ETF, joining the likes of BlackRock, Ark, Fidelity, and others. Grayscale is also waiting for the SEC to review its denied application from last year, with improved chances after a recent court victory. However, Franklin’s filing did not disclose its exchange partner for a surveillance sharing agreement, a significant concern for the SEC during the review process. Franklin’s CEO, Jenny Johnson, has previously acknowledged Bitcoin as a distraction but lauded its underlying blockchain technology as a true innovation.
Hot Take: Franklin Templeton’s Entry Adds to the Growing Competition for a Bitcoin Spot ETF
Franklin Templeton’s decision to enter the race for a Bitcoin spot ETF adds to the increasing competition in the market. As the tenth fund awaiting SEC approval, Franklin joins other investment giants like BlackRock, Ark, and Fidelity in seeking to offer this investment vehicle to U.S. investors. The recent court victory of Grayscale, another major player in the crypto industry, against the SEC has boosted the hopes of all ETF applicants. However, Franklin’s filing lacks clarity on its exchange partner, which could be a hurdle in the SEC’s decision-making process. Despite the previous skepticism of Franklin’s CEO towards Bitcoin, the company recognizes the value of blockchain technology. With the growing interest in crypto investments and the ongoing developments in the ETF space, the race to launch a Bitcoin spot ETF is heating up.
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