Franklin Templeton Sets Its Sights on a Spot Bitcoin ETF
Global investment firm Franklin Templeton has made a notable decision to venture into the digital currency realm by considering the launch of a spot Bitcoin exchange-traded fund (ETF). This move reflects the company’s progressive stance on digital assets and highlights the growing acceptance of cryptocurrencies, particularly Bitcoin. The announcement has caused a 4.2% surge in BTC’s price, surpassing $26,000. The proposed offering, called the “Franklin Bitcoin ETF,” will primarily consist of Bitcoin as its assets. Coinbase Custody Trust Company, a subsidiary of Coinbase, will serve as the custodian for these assets, adding credibility and security to the fund. If approved by the SEC, the ETF’s shares will be traded on the Cboe BZX Exchange.
Bitcoin’s Recovery Following Franklin Templeton’s ETF Filing
Bitcoin has shown signs of recovery following the announcement of Franklin Templeton’s spot Bitcoin ETF filing. The cryptocurrency experienced a slight surge, breaking the recent downward trend in the market. In the past 24 hours, Bitcoin’s price has increased by nearly 3%, reaching $26,185. This surge allowed Bitcoin to move away from the stagnant price zone of around $25,000 that it had been in for the past week. Additionally, the trading volume of Bitcoin has significantly increased, rising from $1.7 billion to $18.4 billion in the past 24 hours. Despite the anticipation surrounding the first-ever spot crypto ETF, the SEC has historically been hesitant to approve such proposals.
Hot Take: SEC’s Delay on Spot Bitcoin ETFs
The SEC’s decision to postpone its rulings on spot Bitcoin ETF proposals in recent weeks reflects its cautious approach towards these investment products. The regulatory body is currently handling a large number of applications in this category, which has led to delays in the decision-making process. So far, no spot crypto ETF has received approval from the SEC. While Franklin Templeton’s move into the space is promising, it enters a domain where regulatory obstacles remain significant. The industry eagerly awaits the approval of the first spot crypto ETF, which could have a significant impact on the mainstream adoption of digital assets.
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