One of the world’s largest investment managers, Franklin Templeton, has submitted an application to the United States Securities and Exchange Commission (SEC) for a spot Bitcoin Exchange Traded Fund (ETF).
The proposed “Franklin Bitcoin ETF” could potentially open doors for increased institutional involvement in the cryptocurrency market. Notably, the ETF plans to hold Bitcoin primarily in custody with Coinbase Custody Trust Company, a trusted and compliant crypto exchange known for its robust security measures.
If approved, the ETF’s shares will be listed and traded on the Cboe BZX Exchange, highlighting the growing convergence between traditional financial markets and the crypto industry. The choice of pricing mechanism mentioned in the filing is the CME’s CF Bitcoin Reference Rate, specifically the New York Variant.
Franklin Templeton’s move to file for a Bitcoin ETF aligns with the trend observed among major financial institutions like BlackRock, positioning themselves for potential approval of spot Bitcoin ETFs by the SEC.
While Franklin Templeton’s interest in a Bitcoin ETF may not be surprising given its reputation in structured investment products, the fact that the company has not previously pursued one makes its entry into the crypto ETF space noteworthy. Additionally, the company has shown a willingness to explore blockchain technology and innovative funds that combine it with tokenized treasury bonds, demonstrating its commitment to financial innovation and adapting to evolving investment opportunities.