Franklin Templeton: New Challenger in Bitcoin ETF Race, SEC Approval Awaited

Abha359

"One of the world's largest asset management companies, Franklin Templeton, submitted an ETF application to the SEC on Tuesday. The company, alongside other well-known fund management firms like BlackRock and Fidelity, is vying for the opportunity to launch a spot Bitcoin ETF in the crypto space. According to the application filed on September 12th, the fund will be managed as a trust fund. The fund's assets will primarily consist of BTC held in custody by Coinbase, with the Bank of New York Mellon serving as the cash custodian and administrator.

While Franklin Templeton has not yet provided an ETF ticker symbol, if approved, the product's shares will trade on the Cboe's BZX exchange. The San Mateo-based company emphasized the risks posed by the prevailing regulatory uncertainty in the United States in its submitted documents:

""The U.S. digital asset market faces regulatory uncertainty, adverse legislative or regulatory developments could seriously harm the value of BTC or the shares, for example, by imposing onerous conditions or outright banning the use of BTC, banning mining activities, banning digital wallets, or banning the provision of services related to BTC trading and custody.""

It's worth noting that Franklin Templeton currently manages approximately $1.5 trillion in assets. While the crypto industry eagerly anticipates the day when spot BTC ETFs will be listed, the SEC has been progressing slowly in approving such investment vehicles. The regulatory agency has repeatedly rejected all applications, citing concerns about potential market manipulation by crypto asset traders.

Some ""hopeful"" companies, including the world's largest asset management firm, BlackRock, have submitted new ETF applications to provide ordinary investors with direct exposure to BTC. Franklin Templeton's application comes after the SEC postponed decisions on all spot ETF applications on August 31st. On August 29th, a court ruled that the regulatory agency must reevaluate Grayscale's application to convert its BTC Trust (GBTC) into a spot ETF."