Franklin Templeton, a prominent Wall Street powerhouse with approximately $1.4 trillion in assets under management, has thrown its hat into the ring in the race for Bitcoin ETF. The global asset management giant submitted its application to the U.S. Securities and Exchange Commission (SEC) on Tuesday, marking a significant development in the world of cryptocurrency investments.
Dubbed “The Franklin Bitcoin ETF,” this new financial product is poised to become a part of the Franklin Templeton Digital Holdings Trust. The company’s application further revealed that the ETF’s shares would be publicly listed and traded on the Cboe BZX Exchange, a prominent stock exchange known for its innovative financial products.
Notably, Coinbase, America’s largest cryptocurrency exchange, has been entrusted with the crucial role of serving as the custodian for Franklin Templeton’s Bitcoin ETF. This decision aligns with a trend among recent Bitcoin ETF applicants, as several have selected Coinbase as their trusted custodian and surveillance-sharing partner.
Under this arrangement, Coinbase will actively share critical information related to trading activities, clearing processes, and customer identification.
The shared data aims to mitigate the risks associated with market manipulation, enhancing transparency and security within the cryptocurrency space. Additionally, Coinbase will be responsible for the secure storage of the Bitcoin assets that underpin the ETF’s shares, bolstering investor confidence in the fund’s integrity.
The SEC, America’s regulatory authority responsible for overseeing financial markets, is currently evaluating multiple applications for spot Bitcoin ETFs by asset manager powerhouses, including Fidelity and BlackRock.
Last month, the SEC made headlines by delaying its decision on multiple Bitcoin ETF applications, including the highly anticipated proposal from BlackRock. The agency’s next deadline for a response is October 16, though it retains the option to further postpone its decision.
In a recent interview, former SEC Chairman, Jay Clayton, made a clear stance on Bitcoin, saying, “It is clear that Bitcoin is not a security…approval is inevitable.”
SEC Chair Gary Gensler, during a recent appearance before the Senate Banking Committee, affirmed that the commission was diligently reviewing the numerous Bitcoin ETF applications. The regulatory body’s careful consideration underscores the significance and complexity of this emerging asset class in traditional financial markets.
As Franklin Templeton joins the ranks of financial heavyweights vying for a Bitcoin ETF, the cryptocurrency market eagerly awaits the SEC’s forthcoming decisions, which could pave the way for increased accessibility and institutional participation in the digital asset space.
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