Major financial services company Franklin Templeton has filed for regulatory approval to launch a bitcoin exchange-traded fund (ETF), joining other major players like BlackRock and Fidelity in the race to offer a spot bitcoin ETF in the US.
- On September 12th, Franklin Templeton filed for a spot bitcoin ETF with the SEC. The proposed ETF would invest directly in bitcoin and custody the cryptocurrency with Coinbase.
- If approved, the ETF would trade on the Cboe BZX Exchange under the symbol "BTC".
- Franklin Templeton is a $1.5 trillion asset manager, making it one of the largest traditional finance companies to seek a spot bitcoin ETF so far.
- The SEC has yet to approve a spot bitcoin ETF in the United States. However, analysts believe the filings from major financial institutions like Franklin Templeton increase the chances of an approval.
- A spot bitcoin ETF would allow mainstream investors easy exposure to bitcoin through brokerage accounts without having to directly hold the cryptocurrency.
- The bitcoin market could see significant inflows from institutional investors if a spot ETF is approved, potentially boosting prices.
- Competing filings have been submitted by Fidelity, BlackRock and others. The SEC will likely approve the first institutional-grade bitcoin ETF application it deems suitable.
- Franklin Templeton's filing reflects growing interest in bitcoin from traditional finance companies. Major institutions increasingly see cryptocurrencies as an investable asset class.
This is a significant development for bitcoin adoption and could be a catalyst for the next stage of mainstream acceptance if regulators give it the green light. With major players battling to get the first approval, the bitcoin ETF race is heating up.