The revised proposal allows the ETF to utilize both in-kind and cash mechanisms. The ETF plans to store Bitcoin in cold storage, with custody services provided by Coinbase Custody Trust.
Franklin Templeton has submitted an updated S-1 filing to the Securities and Exchange Commission (SEC), seeking approval for the launch of a Bitcoin exchange-traded fund (ETF). This move comes shortly after the SEC decided to postpone the consideration of the previous proposal.
The Franklin Bitcoin ETF shall list on the New York Stock Exchange’s Arca platform, mirroring the performance of Bitcoin’s price before fees and expenses, as outlined in the preliminary prospectus.
The revised proposal allows the ETF to utilize both in-kind and cash mechanisms. While the SEC has recommended a cash model, investment giants BlackRock and Ark Invest are contemplating Bitcoin ETFs that employ in-kind creations and redemptions. The ETF plans to store Bitcoin in cold storage, with custody services provided by Coinbase Custody Trust.
UPDATE: Franklin has submitted an updated prospectus for their spot #Bitcoin ETF
— James Seyffart (@JSeyff) November 28, 2023
Despite the SEC’s historical rejection of spot Bitcoin ETF applications due to concerns about volatility, liquidity, and potential manipulation, recent approvals of Bitcoin futures ETFs suggest a growing openness to the concept. This development coincides with a broader trend, where major financial institutions like Fidelity Investments, Citigroup, and BlackRock are either providing exposure to digital assets or exploring opportunities for expansion.
The filing from Franklin Templeton comes soon after the SEC delay. The SEC has invited the public to share their views on concerns related to the potential manipulation of funds and the underlying Bitcoin markets. Interested parties can submit their initial comments on the proposals within a 21-day period to the SEC. Rebuttals, on the other hand, will be accepted up to 35 days after the publication in the Federal Register.
Bitcoin ETF Approvals in January 2024
The SEC is gearing up to potentially approve all spot Bitcoin ETF applications simultaneously on January 10, according to Bloomberg ETF Analyst James Seyffart. This coordinated approach aims to eliminate any perceived advantage for early applicants, fostering fairness in the approval process.
Anticipation is high that January 10 could mark a pivotal moment for the crypto market, with expectations of a significant influx of institutional and retail investment, potentially triggering a sustained bull market.
Analysts have made bullish predictions, envisioning substantial price increases for Bitcoin (BTC) in 2024. Fundstrat anticipates nearly a 400% surge, while Matrixport predicts a more than 200% increase to $125,000 by the end of 2024.