The terms of Franklin Templeton’s spot bitcoin ETF application are similar to those of recent applications from other traditional finance firms.
Asset manager Franklin Templeton with $1.5T in assets, has joined Fidelity, BlackRock and others in seeking spot Bitcoin ETF application grant by the US Securities and Exchange Commission (SEC).
Franklin Templeton joins others in application
Franklin Templeton follows BlackRock and other financial giants who have wagered on the possibility of the SEC granting the spot Bitcoin ETF applications in its custody.
In the traditional finance space, Franklin Templeton is already a giant with mutual funds and ETFs. The new filing will list the fund on the Cboe BZX Exchange.
The terms of Franklin Templeton’s spot bitcoin ETF application are similar to those of recent applications from other significant traditional finance firms. The filing states that Coinbase will serve as the fund’s custodian for the bitcoin it holds. In addition, the CME’s CF Bitcoin Reference Rate-New York Variant will be used for pricing.
Despite delays, market analysts are warming around to the idea of a bitcoin ETF entering the U.S. market, Franklin Templeton’s is not expected to launch first. Other potential grantees including BlackRock, WisdomTree, Fidelity, and others are further along in their application process with the SEC.
Franklin Templeton noted the risk from regulatory uncertainty in its application: “Digital asset markets in the U.S. exist in a state of regulatory uncertainty, and adverse legislative or regulatory developments could significantly harm the value of bitcoin or the Shares, such as by banning, restricting or imposing onerous conditions or prohibitions on the use of bitcoins, mining activity, digital wallets, the provision of services related to trading and custodying bitcoin, the operation of the Bitcoin network, or the digital asset markets generally.”
Analysts at Bloomberg Intelligence, for instance, increased the possibility that a bitcoin ETF will be approved by the end of 2023 from 65% to 75% as a result of the decision. According to the analysts’ research report from August, there is a 95% likelihood that such a product will debut in the US by the end of 2024.
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