Franklin Templeton files for spot Bitcoin ETF

Asset manager Franklin Templeton applied with the United States Securities and Exchange Commission on Sept. 12 to launch a spot Bitcoin exchange-traded fund (ETF).

The S-1 registration statement comes after the SEC delayed decisions on spot ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise and Invesco on Aug. 31 and a court ruling on Aug. 29 that the SEC must consider Grayscale’s application to covert its Bitcoin (BTC) futures ETF into a spot ETF.

According to the application, the fund would be structured as a trust. Coinbase would custody the BTC, and Bank of New York Mellon would be the cash custodian and administrator. Fund shares would trade on the Cboe BZX Exchange. The SEC’s next deadline for deciding on the application is Oct. 16.

Franklin Templeton noted the risk from regulatory uncertainty in its application:

Digital asset index provider CF Benchmarks, which is regulated in the United Kingdom, would provide daily valuations based on the Coinbase, Bitstamp, iBit, Kraken, Gemini, and LMAX Digital exchanges. Trades would be indexed at five-minute intervals.

Franklin Templeton has $1.5 trillion in assets under management. At the time of writing, the price of BTC was up over 4%.