Franklin Templeton files for Spot Bitcoin ETF
the 1.5 trillion asset manager joins a growing list of applications filed with the SEC
Franklin Templeton has today joined a number of other asset managers applying to the SEC to launch their own spot Bitcoin ETF product to be marketed to retail and institutional investors. This news comes after the SEC recently delayed decision on equivalent applications from Blackrock and Wisdomtree.
A Bitcoin ETF is an exchange-traded fund composed of assets related to Bitcoin's price. They are traded on a traditional exchange instead of a cryptocurrency exchange. A Bitcoin ETF would make it easier for people to invest in Bitcoin without requiring technical knowledge.
What happened?: The United States Securities and Exchange Commission has been rejecting Spot Bitcoin ETF applications from Asset Management companies for many years citing anti-fraud and investor protection standards. There are currently no Spot Bitcoin EFTs available in the US that directly represent the current price of Bitcoin. However Europe has recently approved the "Jacobi FT Wilshere Bitcoin ETF", regulated by the Guernsey Financial Services Commission (GFSC) which will trade under the ticker "BCOIN." on Euronext Amsterdam exchange.
Explain it like I'm 5: A lot of big companies want to help people buy and sell bitcoin more easily as part of their savings, but part of the US government is stopping them because the say its not safe for people. The Bitcoin friendly people say the US government worries too much or has another secret reason for not allowing it, but the people who don't like Bitcoin think they are doing a good job and should carry on making rules like that.
The following is a complete list of Asset Managers who have filled applications with the SEC and the approximate dates.
- Blackrock (Jun 2023)
- Wisdom Tree (Mar 2021 + Jun 2023)
- Invesco / Galaxy (Sep 2021 + Jun 2023)
- Valkyrie (Jan 2021 + Jun 2023)
- Ark Invest / 21shares (Jun 2021 + Jan 2023 + Jun 2023)
- VanEck (2018 + Dec 2020 + mid 2022 + Jun 2023)
- Fidelity / Wise Origin (Mar 2021 + Jun 2023)
- Grayscale (2016 + Oct 2021) (In litigation since Jun 2022, with a court win in Aug 2023)
Note that MOST of the Asset managers refilled their applications in June 2023 after repeat rejections from the SEC.
Explain it like I'm 5: The number of companies asking the government if they can help people buy Bitcoin is growing and because some of the new companies are very big and well known the government eventually may need to allow them. If that does happen, then a lot of new people will want to buy Bitcoin all at once which will make Bitcoin very precious.
Sources and Prior Data:
September 13th, 2023, ProactiveInvestors reported :
Bitcoin ETF race back on as Franklin Templeton steps up to the plate
August 15th, 2023, Coindesk reported :