Franklin Templeton Holds Meeting with SEC regarding Bitcoin ETF
The SEC and Franklin Templeton engaged in discussions as cryptocurrency advocates remained optimistic about spot Bitcoin ETFs despite market fluctuations.
On December 8, the $1.5 trillion asset manager reportedly had a meeting with the U.S. Securities and Exchange Commission (SEC) to further discuss their application for a spot Bitcoin ETF. This product is highly anticipated by several potential issuers who are eager to introduce it to the American market.
While the details of the meeting were not disclosed, it is known that the SEC has been in talks with various issuers in recent weeks, including BlackRock and Grayscale. The fact that discussions took place with Franklin Templeton suggests progress has been made with their application.
Franklin Templeton entered the race for a spot Bitcoin ETF in September 2023, joining a growing list of issuers that now totals 13, with Pando being the latest to file its bid. The SEC previously postponed its decision and instead extended the comment period for Franklin Templeton and several other issuers.
Although there is hope among proponents that the SEC could approve multiple filings by January 2024, the next update on Franklin Templeton’s application is not expected until March 31, and the final deadline is May 30.
In other news related to spot Bitcoin ETFs, experts believe that the final stages before the SEC approves issuers to list their funds are now underway. Talks between the securities watchdog and potential issuers have progressed to key stages, with both parties discussing the details of an agreed redemption plan.
Analysts have suggested that the SEC would likely prefer cash-based systems instead of the alternative in-kind model. However, a final decision on this matter has yet to be announced by Gary Gensler’s commission.
According to Galaxy Digital CEO Mike Novogratz and ARK Invest chief Cathie Wood, spot ETFs that invest in Bitcoin (BTC) would attract billions of dollars in investments and serve as an endorsement for institutional investors. Wood’s company is expecting a response from the SEC on its bid by early next month.
Sunny Lu, the CEO of L1 network VeChain, concurs with Novogratz and Wood regarding the potential influx of institutional wealth if the SEC approves these applications. Lu stated that such news could have an even greater impact on the markets than Bitcoin’s halving event.
Overall, the progress being made in discussions between the SEC and issuers, such as Franklin Templeton, indicates positive developments in the pursuit of spot Bitcoin ETFs. The potential approval of these products by the SEC could have significant implications for the cryptocurrency market and attract substantial institutional investments.
