The US-based asset management firm Franklin Templeton
entered the race to obtain approval for the first US exchange-traded fund (ETF)
that directly invests in Bitcoin. Franklin Templeton filed an application with
the US Securities and Exchange Commission (SEC) today (Tuesday), joining the
ranks of other asset managers like Fidelity and BlackRock.
If the SEC gives the
green light, Franklin Templeton intends to rely on Coinbase Global as the
custodian for the ETF’s Bitcoin holdings, while Bank of New York Mellon will
handle the cash component of the fund.
The rise in the price of
Bitcoin throughout the year can be partially attributed to the growing optimism
that the largest asset management firms, including BlackRock and now Franklin
Templeton, are showing interest in spot Bitcoin ETFs. This interest has sparked
hopes that the SEC will be more inclined to approve such a fund despite
previously rejecting such applications.
The supporters of spot
Bitcoin ETFs argue that their introduction would open digital currencies to a
broader base of investors, potentially driving the value of Bitcoin up.
However, the SEC has raised concerns about the potential fraud and market
manipulation in the past when rejecting similar applications.
The path toward spot
Bitcoin ETF approval took a significant turn in August when Grayscale
Investments secured a victory over the SEC, Finance
Magnates reported. A
federal appeals court overturned
the SEC’s rejection of
Grayscale’s application to transform its Bitcoin trust into a spot Bitcoin ETF.
The court dismissed the objection by the SEC as arbitrary and capricious,
citing a lack of clear explanation.
Franklin Templeton has
been making notable strides in the blockchain and cryptocurrency space. In
2021, the company launched a money market fund that leverages blockchain
technology to record share ownership. The Franklin Onchain US Government Money
Fund is currently valued at USD $295 million.
Shift to Ethereum ETFs
About a week ago, the
Chicago Board Options Exchange (CBOE) submitted
two applications to the
SEC, seeking approval for the creation of the VanEck Ethereum ETF and the ARK
21Shares Ethereum ETF. If the applications are approved, these ETFs will be
listed on the CBOE’s BZX exchange.
The shift towards
Ethereum followed yet another delay by the SEC in rendering a verdict on spot
Bitcoin ETFs. The SEC moved the decision for applications from Invesco,
WisdomTree, and Valkyrie to mid-October.
Meanwhile, the
London-based Jacobi Asset Management unveiled
Europe’s first spot Bitcoin exchange-traded fund (ETF) on Euronext Amsterdam last month. Although
approval was obtained in 2021, the launch was postponed due to evolving
conditions in the digital asset space.
The US-based asset management firm Franklin Templeton
entered the race to obtain approval for the first US exchange-traded fund (ETF)
that directly invests in Bitcoin. Franklin Templeton filed an application with
the US Securities and Exchange Commission (SEC) today (Tuesday), joining the
ranks of other asset managers like Fidelity and BlackRock.
If the SEC gives the
green light, Franklin Templeton intends to rely on Coinbase Global as the
custodian for the ETF’s Bitcoin holdings, while Bank of New York Mellon will
handle the cash component of the fund.
The rise in the price of
Bitcoin throughout the year can be partially attributed to the growing optimism
that the largest asset management firms, including BlackRock and now Franklin
Templeton, are showing interest in spot Bitcoin ETFs. This interest has sparked
hopes that the SEC will be more inclined to approve such a fund despite
previously rejecting such applications.
The supporters of spot
Bitcoin ETFs argue that their introduction would open digital currencies to a
broader base of investors, potentially driving the value of Bitcoin up.
However, the SEC has raised concerns about the potential fraud and market
manipulation in the past when rejecting similar applications.
The path toward spot
Bitcoin ETF approval took a significant turn in August when Grayscale
Investments secured a victory over the SEC, Finance
Magnates reported. A
federal appeals court overturned
the SEC’s rejection of
Grayscale’s application to transform its Bitcoin trust into a spot Bitcoin ETF.
The court dismissed the objection by the SEC as arbitrary and capricious,
citing a lack of clear explanation.
Franklin Templeton has
been making notable strides in the blockchain and cryptocurrency space. In
2021, the company launched a money market fund that leverages blockchain
technology to record share ownership. The Franklin Onchain US Government Money
Fund is currently valued at USD $295 million.
Shift to Ethereum ETFs
About a week ago, the
Chicago Board Options Exchange (CBOE) submitted
two applications to the
SEC, seeking approval for the creation of the VanEck Ethereum ETF and the ARK
21Shares Ethereum ETF. If the applications are approved, these ETFs will be
listed on the CBOE’s BZX exchange.
The shift towards
Ethereum followed yet another delay by the SEC in rendering a verdict on spot
Bitcoin ETFs. The SEC moved the decision for applications from Invesco,
WisdomTree, and Valkyrie to mid-October.
Meanwhile, the
London-based Jacobi Asset Management unveiled
Europe’s first spot Bitcoin exchange-traded fund (ETF) on Euronext Amsterdam last month. Although
approval was obtained in 2021, the launch was postponed due to evolving
conditions in the digital asset space.