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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP drops to $0.40 as Ripple and altcoins are hit by marketwide correction
Ripple piled losses alongside top altcoins and Bitcoin early on Friday. The German government’s Bitcoin transfers and Mt.Gox payback to creditors have created uncertainty among traders and increased the pressure on Bitcoin and altcoins like XRP.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Bitcoin dipped under $54,000 early on Friday as the crypto market suffered a steep correction. Ethereum lost key support at $3,000, erasing gains ahead of the anticipated approval of the Spot Ether ETF.
Bitcoin Cash faces potential 24% crash as Mt. Gox starts repayments
Bitcoin Cash price trades below the weekly support level of $378.6, experiencing a 20% decline this week. Mt.Gox moves over 47,229 BTC worth $2.71 billion, signaling FUD in the market.
Bitcoin faces second largest liquidation event in history, erasing 25% of Base meme coins’ market cap
Bitcoin on-chain data confirms that the current correction represents the second-largest liquidation event in BTC’s history. Base meme coin market capitalization dipped over 25% in the wake of the market-wide decline in crypto prices.
Bitcoin: BTC sinks under $55,000 as Mt Gox prepares payment to creditors
Bitcoin (BTC) price is having its worst week of the year, influenced by selling activity among BTC miners and heavy transfers of Bitcoins to exchanges by Mt Gox and the German Government. Technical indicators hint that BTC may undergo a further 7% decline to retest the $52,000 level.