Franklin Templeton Joins the Race to Launch Bitcoin Spot ETF
Date: 2023-09-12 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Spot Bitcoin ETF Explained
An ETF is a publicly traded investment instrument that tracks the price of an underlying asset. In the case of a spot bitcoin ETF, the underlying asset is BTC. Advocates of this idea believe that the current cryptocurrency exchange infrastructure is too complex for beginners and discourages them from purchasing bitcoin. Additionally, some institutional players cannot directly invest in cryptocurrency due to legal restrictions. A spot ETF would enable them to access bitcoin without the need to buy and store coins themselves.
Others Planning to Launch Bitcoin ETF
The current number of applications for creating a spot bitcoin ETF underscores the growing interest of institutional players in the crypto industry. If the SEC approves at least one of them, we will witness a transformative moment in the history of finance, marking the intersection of traditional investment instruments with digital assets.
Currently, the Commission is reviewing nine applications, and Franklin Templeton's request has not yet been added to the registry. The countdown begins from the moment of publication in the registry, but according to SEC regulations, the review period can be extended to 240 days.
Another potential contender for the title of the first issuer of a spot bitcoin ETF in the U.S. could be Grayscale Investments. Recall that on August 29, the District of Columbia Appeals Court issued a long-awaited verdict in the legal dispute with the Commission, aimed at transforming the GBTC trust into an ETF.
The regulator has about a month left to request a rehearing. After this period, the court will issue a final mandate and additional instructions.
