Traditional Finance Giant Franklin Templeton Files Spot Bitcoin ETF With the SEC
San Mateo-based Franklin Templeton, one of the world’s largest global investment managers, has joined the spot Bitcoin exchange-traded fund (ETF) frenzy, filing an application with the US Securities and Exchange Commission (SEC) on Tuesday.
Dubbed the “Franklin Bitcoin ETF,” the fund consists primarily of Bitcoin (BTC) “held by a custodian on behalf of the fund.”
JUST IN: Franklin has filed for a spot bitcoin ETF h/t @NateGeraci pic.twitter.com/4KHSPjFkBC
— Eric Balchunas (@EricBalchunas) September 12, 2023
In this case, Coinbase Custody Trust Company will be the custodian for the fund’s BTC holdings and Bank of New York Mellon will be the cash custodian, administrator and transfer agent, the filing read.
The company noted that the shares will be listed and traded on the Cboe BZX Exchange. However, it has not proposed a ticker for the product yet.
Furthermore, Franklin Templeton would use CF Benchmarks Index, a leading provider of cryptocurrency benchmark indices, for BTC prices and to prevent any potential price manipulation.
Franklin Templeton, which oversees some $1.4 trillion in assets under management, filed a blockchain equity fund with the SEC in May, targeting institutional investors.
The company has also been involved in other crypto-related products, including its money-market fund that runs on the Stellar blockchain. In April, the investment firm launched a tokenized mutual fund on Polygon.
Bitcoin ETF Race
The company’s spot Bitcoin ETF filing follows a prolonged delay from the SEC on several similar spot ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise and Invesco, in August.
It isn’t clear when a Bitcoin-linked ETF will go live, even though the agency approved a number of Bitcoin futures trading products. But it is clear that once approved, it would be a game-changer for the crypto industry.
“Franklin Templeton’s move to file for a bitcoin ETF adds new momentum and urgency to the ongoing movement for bitcoin ETF approvals,” says Alex Adelman, CEO and co-founder of Bitcoin rewards app, Lolli.
Adelman told Cryptonews that the filing “amplifies Grayscale’s recent victory against the SEC.”
“The fact that four of the top ten asset managers, with Franklin Templeton alongside industry giants like BlackRock, Fidelity, and Invesco, have joined this race only further underscores the growing recognition of bitcoin as a desirable mainstream investment with strong global demand.”
Following the announcement, Bitcoin price saw a slight surge, up 2.6% to $26,294 at 10:03 a.m. ET, CoinGecko data notes.
