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News/Franklin Templeton Shifts Gears, Eyes Bitcoin ETF Market

Franklin Templeton Shifts Gears, Eyes Bitcoin ETF Market

Sep 12 2023

10 months ago2 minutes read
Robot holding Bitcoin and index fund, representing Templeton's Bitcoin ETF entry

Filing Unveiled: Templeton Joins the Bitcoin ETF Contest

Written by Van

Today, global investment firm Franklin Templeton has staked its claim in the burgeoning Bitcoin ETF market. Submitting a filing to the U.S. Securities and Exchange Commission (SEC) this September 12, 2023, the company marks its debut in a domain previously unexplored. Known for its prowess in crafting structured investment products, including conventional ETFs and mutual funds, this step signifies a strategic shift for the company.


Behind-The-Scenes: Coinbase and Cboe BZX Exchange Partnerships

Robot viewing stock charts, with Bitcoin price screen prominent, signifying market reaction (1).webp

In orchestrating this bold move, Franklin Templeton has enlisted partners with potent industry reputations. Coinbase Custody Trust Company emerges as the custodian for the Bitcoin assets, while the ETF itself will be traded and listed on the Cboe BZX Exchange, Inc., foreseeing yoked benefits and synergy.


The Turf: A Competitive Landscape

Franklin Templeton’s debut has the potential to sculpt a lens through which the rest of the investment world views cryptocurrency. However, it walks into an arena already dotted with contenders. Potential issuers, including powerhouse brands like BlackRock, WisdomTree, and Fidelity, have already made significant progress, with filings in a more mature stage of the SEC approval process.

The regulator is expected to conduct a thorough review of these filings by mid-October. Nonetheless, Franklin Templeton’s Bitcoin ETF may not cash in on a final decision until possibly March 2024, according to SEC’s timelines.


Market Pulse: Bitcoin Leaps in Price

Today's crypto price surge is evident as the market warmly welcomes Templeton's filing, catapulting Bitcoin's valuation. At 2 PM UTC, an upswing of 2.6% sent the coin's price soaring to $26,272, as indicated by the robust metrics and number-crunching engine of Coin360's cryptocurrency charts.

chart.webp

Regulatory Roadblocks: SEC’s Cautious Approach

However, a watchful eye must be kept on the behavior of regulatory bodies. The SEC, known for its cautious policy, recently put decisions about existing spot Bitcoin ETF proposals on ice. The finicky regulator has demonstrated a proclivity towards postponing rulings as it navigates the surge in applications.


Asset Structure: Bitcoin is the Anchor

The filing details a preference for Bitcoin as the primary constituent of the ETF. Coinbase Custody holds this Bitcoin, adding another feather in its cap. In discerning the Bitcoin pricing, the CME's CF Bitcoin Reference Rate – New York Variant serves as the torchbearer.


Expert Opinion: A Clarion Call to Broader Investors 

The proposed ETF could serve as a gateway for mainstream investors to tap into the dynamic world of crypto coin prices, starting with Bitcoin, fitting snugly in their brokerage accounts, and nestled alongside stocks and bonds. This narrative is advanced by a Coindesk article, which sheds light on the potential democratization of financial portfolios.

Simultaneously, The Block's commentary throws light on the SEC's recent hesitation in green-lighting spot Bitcoin ETFs, suggesting caution given the pile-up of applications. 


The Bottom Line: The Advent of Franklin Templeton's Bitcoin ETF 

Franklin Templeton’s voyage into the Bitcoin ETF universe could potentially shift the paradigm of the investment landscape. The firm has rallied heavyweight backing, with Coinbase as the custodian and Cboe BZX Exchange as the ETF's trading platform. 

Yet, formidable challenges lie ahead. Corporate tigers like BlackRock and Fidelity have already carved out a head start. Moreover, the SEC's historical pattern of delays could extend Templeton’s Bitcoin ETF’s gestation period.

For now, the market's welcome wagon for the ETF is out, mirrored by a 2.6% climb in Bitcoin's price. Clearly, the great stakes and keen interest attached to this venture are palpable.


FAQs About Franklin Templeton's Bitcoin ETF 

1. What does Franklin Templeton's Bitcoin ETF mainly house?

Mainly comprising Bitcoin, the ETF entrusts Coinbase Custody with holding the assets.

2. What metric determines the Bitcoin pricing for the ETF?

Bitcoin pricing will follow the CME's CF Bitcoin Reference Rate – New York Variant set as a benchmark.

3. Where can we find Franklin Templeton's Bitcoin ETF for trade?

The ETF has outlined the Cboe BZX Exchange, Inc for its trading and listing.

4. Is Franklin Templeton inaugurating the Bitcoin ETF scene?

No, bigwigs like BlackRock and Fidelity have already filed for a Bitcoin ETF.

5. How has the market reacted to Franklin Templeton's move?

Enthusiastically, the Bitcoin price jumped 2.6%, hitting $26,272 at 2 PM UTC on the day of the announcement.

This article has been refined and enhanced by ChatGPT.

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