Franklin Templeton, the newest traditional asset management company to enter the competitive field, filed for a spot bitcoin exchange-traded fund (ETF) on Tuesday.
Franklin Templeton suggested an ETF that would be held in Coinbase’s custody and trade on the Cboe BZX Exchange, Inc. in a filing with the U.S. Securities and Exchange Commission. A ticker for the product has not yet been suggested by it.
Franklin Templeton has made the same wager as BlackRock and other major financial players that the SEC will soon permit—or may even be compelled by the courts to permit—a spot bitcoin ETF to enter the public markets. A solution like that would make it simple for regular investors to track the price of bitcoin in their brokerage accounts alongside stocks and bonds.
The San Mateo-based company is already well-known for structured investment products like mutual funds and ETFs, so it shouldn’t be surprising that it has an interest in a bitcoin ETF. However, it has never before filed for one, making this entry all the more noteworthy.
However, Franklin Templeton has warmed up to digital assets and has even experimented with cutting-edge products that combine blockchain technology with a tokenized government bond.
Although market analysts are warming up to the idea that a bitcoin ETF may be introduced to the American market, Franklin Templeton’s is not expected to be the first. The bureaucratic process for the SEC is further along for potential issuers including BlackRock, WisdomTree, Fidelity, and others.
Mid-October is the next scheduled date for the regulator to comment on the filings. A final decision might not be made until March 2024, though, if prior bureaucratic delays are any indicator.