Franklin Templeton Joins Wall Street Giants in Pursuit of Launching America’s First Spot Bitcoin ETF

Franklin Templeton, a financial behemoth managing more than $1.5 trillion in assets, has applied to the U.S. Securities and Exchange Commission (SEC) to launch America’s inaugural spot Bitcoin ETF. This places them alongside Wall Street giants like BlackRock and Fidelity, who have also filed for similar products that would enable Americans to invest directly in Bitcoin without holding the actual cryptocurrency.
The fund manager has filed a Form S-1 with the SEC, seeking approval to list its Franklin Bitcoin ETF on the Cboe BZX Exchange. The document specifies Coinbase as the brokerage partner and custodian for the Bitcoin assets and suggests that the Bank of New York Mellon would manage the fund’s cash reserves.
Historically, the SEC has been hesitant to approve spot Bitcoin ETFs due to concerns about market manipulation. Instead, it has greenlighted Bitcoin futures ETFs, causing confusion and legal debates within the cryptocurrency community. In a recent court case against the SEC, judges stated that the commission had acted “arbitrarily and capriciously” when it rejected Grayscale’s application to convert its GBTC fund into a spot Bitcoin ETF. The ruling, however, doesn’t guarantee approval for Grayscale’s spot Bitcoin ETF and necessitates further SEC review.
During a Senate hearing on September 12, SEC Chair Gary Gensler was questioned on this topic. Gensler indicated that the SEC is evaluating multiple spot ETF filings and that he anticipates staff recommendations. Ahead of the hearing, Gensler had criticized the emerging digital asset sector for widespread regulatory non-compliance, reiterating this viewpoint during the session.
As of the latest updates, the SEC has multiple Bitcoin and Ethereum ETF applications on its desk, awaiting a decision.

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