The battle to create America's first exchange-traded fund (ETF) that invests directly in bitcoin has attracted asset manager Franklin Templeton. Following in the footsteps of other significant investment companies like Fidelity and Blackrock, the company submitted an application with the U.S. Securities and Exchange Commission (SEC).
Franklin Templeton submits a spot bitcoin ETF application to the US SEC.
Franklin Templeton, a financial services company based in California that oversees over $1.4 trillion in assets, is the newest financial titan to submit an application to the American securities authority for a spot bitcoin ETF.
On Tuesday, the business submitted its application to the SEC. Franklin intends to utilize top American cryptocurrency exchange Coinbase as the fund's custodian for its bitcoin holdings and Bank of New York Mellon for cash, according to a report from Bloomberg, if it receives approval from the Commission.
Leading asset managers' interest in bitcoin ETFs and the SEC's decision to approve for review a number of applications from well-known market players like Blackrock, after previously rejecting earlier attempts, have sparked confidence in the crypto field this year.
In 2021, the SEC allowed ETFs that hold bitcoin futures, but it hasn't yet approved a spot bitcoin ETF. Decisions on seven applications—those of Invesco Galaxy, Wisdomtree, Bitwise, Vaneck, Fidelity's Wise Origin, Blackrock, and Valkyrie—were delayed by the regulatory body at the end of August.
The Securities Commission justified the action by stating that it needed enough time to fully evaluate the submitted proposals before rendering a decision. The SEC previously rejected applications due to worries about fraud and market manipulation.
The SEC may need to approve many spot bitcoin ETFs at once after Grayscale Investments' legal victory over the agency, according to major investment bank JPMorgan. A federal appeals court rejected the SEC's denial of Grayscale's request to turn its bitcoin trust into an ETF last month.
Do you believe Franklin Templeton and other asset managers will eventually get their applications for spot bitcoin ETFs approved by the U.S. SEC? Comments