SEC Chair Gensler recently commented on the delay in approving spot Bitcoin (BTC) ETFs, coinciding with the latest application from $1.42 trillion asset manager Franklin Templeton.
Franklin Templeton, one of America’s leading multinational investment firms, became the latest to jump on the spot BTC ETF train. The asset manager, which boasts $1.42 trillion in assets under management, filed an S-1 registration with the U.S. SEC on Sept. 12.
JUST IN: Franklin has filed for a spot bitcoin ETF h/t @NateGeraci pic.twitter.com/4KHSPjFkBC
— Eric Balchunas (@EricBalchunas) September 12, 2023
Per the registration, the company seeks to launch a spot-based exchange-traded fund (ETF) with a direct exposure to Bitcoin. The fund is expected to leverage Coinbase Custody as custodian, which continues to be the go-to choice for firms seeking to launch this product.
Per the document, Franklin seeks to include the investment vehicle in its Franklin Templeton Digital Holdings Trust. The firm intends to put up the product for trading on the BZX Exchange from Cboe Global Markets.
With its proposed “Franklin Bitcoin ETF,” Franklin Templeton joins several leading asset managers who have filed similar applications, including BlackRock, Fidelity, WisdomTree, Invesco, and Ark Invest.
The U.S. SEC has continued to delay these applications despite the growing list of investment giants showing interest in launching the investment product.
The application from Franklin comes nearly two weeks after the SEC announced that it would delay its decision on six of the applications filed by these companies. In separate filings, the agency noted that it could come up with a decision in the next 45 days.
The SEC’s move to delay the review of these applications followed a victory secured by Grayscale in its legal battle against the securities regulator.
As reported by The Crypto Basic, on Aug. 29, a ruling from a D.C. Court of Appeals panel noted that the SEC acted arbitrarily by rejecting Grayscale’s application to turn its Bitcoin Trust into an ETF. The three-judge panel asked the agency to review the decision.
SEC Chair Speaks on Delay
Nonetheless, the crypto community has still not witnessed the approval of the first spot-based BTC ETFs. The SEC remains adamant despite having approved several futures-based BTC ETFs.
As these applications pile up, the crypto community has presented a consolidated list of the companies seeking to launch the product, with Franklin Templeton being the latest addition. Notably, these firms have a combined AUM of $17.7 trillion.
Particularly citing Grayscale’s situation, Senator Bill Hagerty of Tennessee recently quizzed SEC Chairperson Gary Gensler, seeking to know what the regulatory agency looks for before approving a spot BTC ETF.
?NEW: @SenatorHagerty, referencing the @Grayscale ruling, asked Gensler what the @SECGov needs to see in order to approve a $BTC Spot ETF.
Gensler replied: "We’re still reviewing that decision. We have multiple filings…we're reviewing them and looking forward to staff's…
— Eleanor Terrett (@EleanorTerrett) September 12, 2023
“We’re still reviewing that decision. We have multiple filings… we’re reviewing them and looking forward to staff’s recommendations,” Gensler said in response, leaving more room for speculation.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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