Breaking: Franklin Templeton files a 19b-4 for its spot Bitcoin ETF application
|Franklin Templeton, an asset manager with up to $1.5 trillion in assets under management (AUM) has filed a 19b-4 for its spot Bitcoin Exchange-traded fund (ETF) application.
SEC Form19b-4 is a form informing the US Securities and Exchange Commission (SEC) of a proposed rule change by a self-regulatory organization (SRO), or simply, a non-governmental body exercising some degree of regulatory authority over an industry or profession.
SROs must file the form with the SEC before making any changes to its rules, particularly when trading rules are concerned.
With this move, the asset manager has officially started the clock with the US SEC, which has to determine whether the asset manager's reasons for the proposed changes are allowed.
Specifically, Franklin Templeton must make it clear that the rule change supports fair trading markets, and provides investor protections and requisite oversight procedure.
The filing comes almost two weeks after the asset manager filed for a Bitcoin Spot ETF, inspiring optimism especially among Bitcoin Cash (BCH) holders, with the Bitcoin fork peaking 15% and liquidating millions of short positions.
In the filing, Franklin Templeton identified Coinbase Trust Company as the custodian for the fund’s Bitcoin holdings.
Similarly, Bank of New York Mellon has been identified as the custodian for the fund’s cash holdings.
Crypto ETF FAQs
What is an ETF?
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Is Bitcoin futures ETF approved?
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Is Bitcoin spot ETF approved?
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
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