Manager Franklin Templeton is the newest member of the “race” to launch the first spot Bitcoin exchange-traded fund (ETF) in the history of the United States.
This Tuesday (12), as reported by the Wall Street Journal (WSJ), the company filed paperwork with the US Securities and Exchange Commission (SEC) to launch the aforementioned product that invests in the spot price of Bitcoin.
In the filing, Franklin Templeton proposed an ETF held by Coinbase that would be traded on the Cboe BZX Exchange, Inc.
According to the document, the Franklin Bitcoin ETF would function as a “series” within the Franklin Templeton Digital Holdings Trust. The fund aims to “generally reflect the price performance of Bitcoin before paying fund expenses.” ETF shares would be backed by Bitcoins held by the Coinbase Custody Trust Company.
Franklin Resources, Inc. is an American multinational holding company that, together with its subsidiaries, is known as Franklin Templeton. It is a global investment firm founded in New York City in 1947 with more than US$1.5 trillion in assets under management.
The asset manager’s request comes more than a week after the SEC delayed a decision on several such ETF applications. The list includes, for example, orders from BlackRock, WisdomTree, Valkyrie and Fidelity. The SEC’s next deadline to respond to a spot BTC ETF application is October 16th.
However, the regulator may decide, on that date, to postpone its decision again. The eventual launch of a spot Bitcoin ETF is seen as a watershed moment in the crypto market. This is because such a product would give ordinary investors an easy way to gain exposure to the price of Bitcoin in their brokerage accounts, alongside stocks and bonds.
It is believed that greater adoption of BTC could result in an increase in the price of the cryptocurrency. After all, as there is a maximum number of Bitcoin in circulation, according to the law of “supply and demand” it is expected that the price of the cryptocurrency will rise with wider adoption.