Investment company Franklin Templeton has filed an application for… SEC to register a spot exchange-traded fund (ETF) based on the first cryptocurrency.
The organization’s product, called the Franklin Bitcoin ETF, will consist primarily of bitcoins held by Coinbase Custody Trust Company.
If approved, the investment instrument will be launched on the Cboe BZX exchange. CF Bitcoin from the Chicago Mercantile Exchange is used as a benchmark.
The San Mateo-based company is one of the leaders in the structured products segment. Franklin Templeton’s total assets under management are approximately $1.4 billion.
The firm has joined other players in the race for a Bitcoin ETF. On July 14, the SEC accepted applications from BlackRock, VanEck, Fidelity Investments, Invesco and WisdomTree for consideration.
So far, the regulator has not given any approval for the launch of spot ETFs for digital gold. The Commission made an exception for similar products based on futures for the first cryptocurrency from ProShares and Valkyrie Investments.
On August 31, the department delayed making a decision on the applications until at least mid-October. The SEC’s decision caused the Bitcoin price to collapse below $26,000.
In total, the regulator has 240 days to respond from the date it begins reviewing applications.
Earlier, Bloomberg analysts James Seyffarth and Eric Balchunas estimated the probability of launching a spot Bitcoin ETF by the end of 2023 at 75%. Experts have increased their chances after Grayscale’s legal victory in its case against the SEC.
Let us remind you that the department’s ex-lawyer John Reed Stark ruled out approval of a spot Bitcoin ETF. However, Bernstein experts described the chances of a new wave of applicants as high.
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