Franklin Templeton, a prominent US investment firm managing over a trillion dollars, has entered the race to offer the first spot-bitcoin exchange-traded fund (ETF) in traditional finance.
The firm has filed with the US Securities and Exchange Commission, designating Coinbase Global Inc (NASDAQ:COIN) as the crypto custodian and Bank of New York Mellon as the cash custodian. This move puts Franklin Templeton in competition with industry giants like GrayScale, BlackRock, Fidelity, and Ark Invest, pressuring regulators for spot-bitcoin ETF approval.
Such an investment vehicle could unlock access to bitcoin for retail and institutional investors on the traditional stock exchange, potentially tapping into trillions of dollars of untapped wealth. While the SEC has rejected previous applications, a recent court victory for Grayscale has brought the industry closer to this coveted milestone.
In response to Franklin Templeton's application, Bitcoin surged to $28,570, experiencing a slight correction but ultimately closing 2.7% higher at $25,840, with an additional 0.5% gain in Asian trading, reaching $25,979 at the time of writing. This unexpected rally led to significant short liquidations in the futures market.