Investing heavyweight, Franklin Templeton, caught the eye of blockchain enthusiasts with an announcement that is set to bring cryptocurrencies into Wall Street’s direct spotlight. The San Mateo-based investment titan threw its hat in the Bitcoin exchange-traded fund (ETF) ring, filing an application with the US Securities and Exchange Commission (SEC). Aptly termed “Franklin Bitcoin ETF,” the fund will primarily contain Bitcoin, stored by a custodian on behalf of the fund. The custodianship of the fund’s Bitcoin holdings will fall under the scopes of Coinbase Custody Trust Company, while the Bank of New York Mellon takes up the reins as the cash custodian, administrator, and transfer agent.
Here’s a real web of convergence as the shares, as yet unsynced with a specific ticker, plan their debut on the Cboe BZX Exchange. As an additional safety measure, Franklin Templeton indicated the leveraging of CF Benchmarks Index to dispel any potential price manipulating fog clouding Bitcoin prices.
The curious case of the increasingly popular, yet scarce Bitcoin-linked ETFs still remains subject to the whims of the SEC. Despite the approval of several Bitcoin futures trading products by the agency, the exact date of a Bitcoin-linked ETF becoming live remains obscure. Despite this relative uncertainty, it is universally acknowledged that the approval of Bitcoin-linked ETFs will significantly alter the cryptosphere’s landscape.
As Alex Adelman, CEO and co-founder of Bitcoin rewards app, Lolli, presented it, Franklin Templeton’s Bitcoin ETF filing has infused a new sense of urgency in the crypto industry’s quest for ETF approvals. Comparing this movement to Grayscale’s recent SEC triumph, Adelman hints at crypto advancement into mainstream investment territory.
Here’s some food for thought though – while Franklin Templeton charges ahead, various similar ETF applications from familiar names like WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco are stuck in SEC limbo since August. The fact that Franklin Templeton joins the ranks of industry behemoths such as BlackRock, Fidelity, and Invesco in the race to Bitcoin-linked ETFs fortifies the argument of rising acceptance of Bitcoin as a globally sought after investment.
On a side note, Franklin Templeton’s announcement seemed to electrify the cryptocurrency markets as Bitcoin price experienced a subtle surge. Does the growing influence of major asset managers set the perfect stage for the normalization of cryptocurrencies? Or will it complicate the uncharted waters depicting the fusion of conventional finance and blockchain technology? Notwithstanding the potential regulatory hurdles, the trend of investment powerhouses throwing their cards on the crypto table is an undeniably impactful trend, potentially shaping the future of global finance.
Source: Cryptonews
