The race for spot Bitcoin ETF approval has a new member.
Franklin Templeton, a leading asset management firm, has officially submitted an application to the US Securities and Exchange Commission (SEC) to introduce a spot Bitcoin exchange-traded fund (ETF).
The move comes on the heels of postponed decisions by the SEC regarding similar applications from other companies and a court mandate to consider Grayscale’s conversion from Bitcoin futures to a spot ETF.
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The application, which became public on September 12th, outlines that the proposed fund will operate as a trust. With Coinbase serving as the Bitcoin custodian and the Bank of New York Mellon functioning as the cash custodian and administrator, the ETF’s shares would be listed on the Cboe BZX Exchange.
The SEC is expected to decide on the application by October 16th.
Franklin Templeton emphasized the regulatory risks associated with the digital asset market in the US in its application. The firm stated:
Digital asset markets in the US exist in a state of regulatory uncertainty, and adverse legislative or regulatory developments could significantly harm the value of Bitcoin or the Shares <...>.
These potential legislative measures could range from restrictions and prohibitions on Bitcoin usage and mining to the general operation of digital asset markets.
In terms of valuation, a UK-regulated digital asset index provider, CF Benchmarks, will supply daily valuations. These will be calculated from data sourced from multiple crypto exchanges, including Coinbase, Bitstamp, iBit, Kraken, Gemini, and LMAX Digital, with trades indexed at intervals of five minutes.
It is worth noting that following the filing, Bitcoin's price saw an over 4% increase. However, at the time of writing, the price jump has stabilized, with BTC retailing for $25,952.
In May, Franklin Templeton filed an application for a private equity fund, Blockchain Fund II.
The filing from Franklin Templeton for a Bitcoin spot ETF opens yet another chapter in the ongoing saga of cryptocurrency adoption against a backdrop of regulatory uncertainty. With a decision from the SEC pending in October, the application could serve as a significant milestone in the expanding relationship between traditional financial markets and digital assets.
