Fund Manager Franklin Templeton Files for a Spot Bitcoin ETF

Asset management giant Franklin Templeton has joined a cohort of institutional companies filing for approval of a spot Bitcoin exchange-traded fund (ETF). The application, dated September 12th, was submitted to the United States Securities and Exchange Commission (SEC) while awaiting approval.

Franklin Templeton Files for a Bitcoin ETF

The asset company, which manages around $1.5 trillion, stated in its proposal that if approved, the spot Bitcoin ETF would be categorized under the Franklin Templeton Digital Holdings Trust.

The company adds that the financial product will be listed on the Cboe BZX Exchange, although the company has yet to propose a ticket for the product. The document enlists Coinbase Custody Trust Company as the custodian for ETF shares, implying that the Bitcoin ETF shares held in its custody will be backed by actual bitcoins in Coinbase. 

Notably, this will be the first time that Franklin Templeton will be filing for a spot Bitcoin ETF. However, the asset management giant has made moves in the past to embrace the crypto industry. One of the most recent moves was a proposed foray into the Stellar blockchain.

Will the SEC Give Approval?

Franklin Templeton’s latest filing with the U.S. regulatory agency trails behind similar applications from companies such as BlackRock, Fidelity, WisdomTree, Invesco, and others.

Over the past few years, institutional companies have submitted proposals to the U.S. SEC for approval so that American investors can be offered a Bitcoin-backed asset.

Approving a spot Bitcoin ETF will allow investors to gain from the price movement of the leading cryptocurrency while benefiting from regulatory safety tied to traditional finance companies.

The SEC has yet to approve any spot Bitcoin ETF despite the pressure mounted on it after Grayscale, another asset management company, received a green light from a U.S. federal court to offer the financial product.

The U.S. SEC has scheduled October 16 as the next deadline to make a decision on whether to approve the financial product or not.