Bitcoin continues to witness a spike in institutional adoption as Franklin Templeton has become the latest asset manager to file with the Securities and Exchange Commission (SEC) for a spot Bitcoin ETF. As the number of applications for spot Bitcoin ETFs keeps increasing, the Bitcoin community is eagerly waiting for an announcement from the SEC in October.
Franklin Templeton Joins The Bitcoin ETF Race
Franklin Templeton, $1.5 trillion asset manager, has joined the growing list of asset managers seeking to launch a spot Bitcoin ETF, as revealed in its recent filing with the U.S. Securities and Exchange Commission (SEC).
Named the Franklin Bitcoin ETF, the proposed fund aims to have its asset portfolio predominantly composed of Bitcoin. To ensure secure custody of these digital assets, Franklin Templeton has partnered with Coinbase Custody Trust Company, a move that was confirmed in an S-1 form submitted this Tuesday.
If the SEC grants approval for this venture, Franklin Templeton plans to list and trade the ETF shares on the Cboe BZX Exchange. In terms of determining Bitcoin pricing, the filing specifies that the fund will rely on the CF Bitcoin Reference Rate from the Chicago Mercantile Exchange (CME), specifically its New York Variant.
Previously, the U.S. Securities and Exchange Commission (SEC) lengthened the review timeline for all six Bitcoin Spot ETF applications currently under consideration. A fresh deadline for a decision has now been established for October 17, 2023, although the regulatory body has not provided specific reasons for the postponement.
SEC Might Soon Approve ETF Applications
Numerous institutional companies, such as BlackRock and Fidelity, have submitted applications for spot Bitcoin ETFs. Additionally, ARK and 21Shares have revealed plans to launch an Exchange-Traded Fund (ETF) that will concentrate on Ethereum, the cryptocurrency with the second-highest market capitalization.
Franklin Templeton joins the ranks of financial giants like BlackRock in anticipating that the SEC could soon greenlight—or potentially be legally compelled to approve—a spot Bitcoin ETF for public trading. Such an offering would provide retail investors with a convenient way to access Bitcoin’s price fluctuations through their existing brokerage accounts, alongside traditional assets like stocks and bonds.
Following this news, BTC price broke above the $26K mark amid selling concerns. The price is currently up by 3%, trading at $26,264.
Per senior Bloomberg ETF analysts Eric Balchunas and James Seyffart, the odds of Spot Bitcoin ETFs receiving approval within this year have been increased to a notable 75%. Furthermore, they project an impressive 95% chance of approval by the close of 2024.
After Grayscale’s recent court win against the SEC, which required the regulatory agency to reevaluate its denial of a Spot Bitcoin ETF application, the chances of seeing such an ETF approved this year have significantly increased.