Franklin Templeton Files Updated Bitcoin ETF Application, Shortly After SEC Delay
Shortly after the SEC delayed the prior application today, a new draft has been put forward for review.
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Franklin Templeton has filed an updated S-1 with the Securities and Exchange Commission (SEC), seeking approval to launch a Bitcoin exchange-traded fund (ETF), just hours after the Commission’s decision to delay the previous proposal.
UPDATE: Franklin has submitted an updated prospectus for their spot #Bitcoin ETF
Earlier today (tweet below) i said that Franklin was the only filer that had not yet submitted an amended S-1. It just dropped a minute ago. https://t.co/YuCrnTFKgx pic.twitter.com/wtVLxUlASf
— James Seyffart (@JSeyff) November 28, 2023
The Franklin Bitcoin ETF, which would be listed on the New York Stock Exchange’s Arca platform, aims to reflect the performance of the price of Bitcoin before fees and expenses, according to the preliminary prospectus.
The new proposal leaves room for the ETF to operate with both in-kind and cash mechanisms. Investment management giants BlackRock and Ark Invest are considering launching Bitcoin ETFs using in-kind creations and redemptions, defying SEC guidance recommending a cash model.
Notably, the language in this S-1 mimics a lot of others on the creation/redemption process. Leaves open the possibility for both In-kind and/or Cash. pic.twitter.com/LtlVAH9ydD
— James Seyffart (@JSeyff) November 28, 2023
The ETF would hold Bitcoin in cold storage with custody provided by Coinbase Custody Trust.
So far, the SEC has rejected all applications for spot Bitcoin ETFs, citing concerns around volatility, liquidity, and potential for manipulation. However, the regulator appears to be warming up to the idea, having approved several Bitcoin futures ETFs in the past.
The updated S-1 comes as major financial institutions including Fidelity Investments, Citigroup, and BlackRock either offer some exposure to digital assets or look at expanding their footprint.
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