Franklin Templeton files for a spot Bitcoin ETF

Asset-management firm Franklin Templeton filed an application with the SEC to register a spot ETF based on the leading cryptocurrency.

The product, named the Franklin Bitcoin ETF, will consist predominantly of Bitcoin held in custody by Coinbase Custody Trust Company.

If approved, the investment vehicle would be launched on the Cboe BZX exchange. The benchmark would be CF Bitcoin from the Chicago Mercantile Exchange.

The San Mateo-based firm is a leader in the structured products segment. Total assets under management at Franklin Templeton amount to about $1.4 trillion.

The firm has joined other players in the race for a Bitcoin ETF. On July 14, the SEC began reviewing applications from BlackRock, VanEck, Fidelity Investments, Invesco and WisdomTree.

To date, the regulator has granted no approvals for spot Bitcoin ETFs. The Commission has approved only futures-based products on the leading cryptocurrency from ProShares and Valkyrie Investments.

On August 31, the agency delayed making a decision on the applications at least until mid-October. The SEC’s decision sent the price of Bitcoin plunging below $26,000.

In total, the regulator has 240 days to respond from the start of the review process.

Earlier, Bloomberg analysts James Seyffart and Eric Balchunas assessed the likelihood of launching a spot Bitcoin ETF by the end of 2023 at 75%. Analysts raised the odds after Grayscale’s legal victory in its case against the SEC.

As reported, former SEC staff attorney John Reed Stark ruled out approval of a spot Bitcoin ETF. However Bernstein analysts noted the odds of a new wave of contenders as high.