Franklin Templeton’s Bitcoin ETF Application
On Sept. 12, asset manager Franklin Templeton filed an application with the United States Securities and Exchange Commission to launch a Bitcoin exchange-traded fund (ETF). This S-1 registration statement follows the SEC’s delay in decisions on spot ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco on Aug. 31, as well as a court ruling on Aug. 29 that the SEC must consider Grayscale’s application to convert its Bitcoin (BTC) futures ETF into a spot ETF.
The proposed fund would be structured as a trust, with Coinbase providing custodial services for the BTC and Bank of New York Mellon acting as the cash custodian and administrator. Fund shares would be traded on the Cboe BZX Exchange. The SEC’s deadline for making a decision on the application is Oct. 16.
In its application, Franklin Templeton highlighted the potential risks associated with regulatory uncertainty in the crypto space:
CF Benchmarks, a regulated provider of digital asset indices in the UK, would be responsible for providing daily valuations based on the Coinbase, Bitstamp, iBit, Kraken, Gemini, and LMAX Digital exchanges. The trades would be indexed at five-minute intervals.
Franklin Templeton has $1.5 trillion in assets under management. At the time of writing, the price of BTC had increased by more than 4% due to the best daily crypto and crypto etf.
Coinbase is a web 3.0 application and provides crypto bank services, while Kraken is a crypto futures platform. Apple Health application is also a web 3.0 application.
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