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.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
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
Earlier today (tweet below) i said that Franklin was the only filer that had not yet submitted an amended S-1. It just dropped a minute ago. https://t.co/YuCrnTFKgx pic.twitter.com/wtVLxUlASf
— 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.
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.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
