The renowned asset management firm, Franklin Templeton, has thrown its hat into the ring for a spot Bitcoin exchange-traded fund (ETF). The California-based company submitted its application to the US Securities and Exchange Commission (SEC) on September 12th.
Franklin Templeton, boasting over 75 years of experience, manages assets of $1.53 trillion as of June 30, 2023. The firm’s recent acquisition of Legg Mason has contributed significantly to its asset base. It offers a diverse range of investment products and services, catering to individual and institutional investors worldwide.
Coinbase and BNY Mellon Play Crucial Roles
In its Form S-1 filing, Franklin Templeton revealed Coinbase Global as its chosen brokerage partner and custodian for Bitcoin holdings. Simultaneously, the Bank of New York Mellon is slated to manage the fund’s cash capital.
Meanwhile, Franklin Templeton’s entry into the Bitcoin ETF race follows in the footsteps of other industry giants such as BlackRock and Fidelity. These prominent traditional financial institutions have also expressed their interest in offering a Bitcoin ETF, signaling a growing optimism in the market.
Such optimism has been bolstered by the belief that ETF approval could lead to increased Bitcoin adoption among a wider range of investors, potentially driving up its value.
While the SEC has historically rejected spot Bitcoin ETF applications, it has approved Bitcoin futures ETFs. This dichotomy has been a point of contention, and a recent court ruling found the SEC’s actions “arbitrary and capricious” in denying Grayscale’s bid to convert its fund into a spot Bitcoin ETF.
This decision has added complexity to the ETF approval process, with the SEC now reevaluating its stance on Bitcoin ETFs.
Franklin Templeton’s Role in the Crypto Space
Franklin Templeton’s foray into the blockchain and cryptocurrency domain extends beyond this recent ETF application. In 2021, the firm launched a blockchain-based money market fund, the Franklin Onchain US Government Money Fund, valued at USD 295 million.
While the road to Bitcoin ETF approval remains uncertain, Franklin Templeton’s entry into the fray highlights the growing recognition of cryptocurrency’s potential in traditional finance.
The outcome of this effort will not only impact the crypto market but could also pave the way for broader institutional investment in digital assets.