Bitcoin Begins Rally As Franklin Templeton Joins Race For BTC Spot ETF
September 12 2023 - 8:00PM
NEWSBTC
Bitcoin (BTC) has welcomed another noteworthy decision from the
global investment firm Franklin Templeton. With a portfolio
spanning various financial instruments, the company is now setting
its sights on one of the most sought-after financial products in
the digital currency realm: a spot Bitcoin exchange-traded fund
(ETF). This development signifies the firm’s progressive stance on
digital assets and underscores the increasing mainstream acceptance
of cryptocurrencies, particularly Bitcoin. Following the news, BTC
has surged 4.2% in the past day, breaking above $26,000, as of this
writing. Related Reading: GBTC’s Discount Narrows Amid
Bitcoin’s Downturn, But A Bullish Trend Is Coming? Details Of The
Franklin Spot BTC ETF Based on recent filings, the proposed
offering has been dubbed the “Franklin Bitcoin ETF.” One of the
fundamental characteristics of this ETF would be its primary
assets—essentially constituted of Bitcoin. Coinbase Custody Trust
Company, a subsidiary of one of the world’s leading cryptocurrency
exchange platforms, will serve as these assets’ custodians. Such a
collaboration could provide the proposed fund an extra layer of
credibility and security, given Coinbase’s longstanding reputation
in the crypto space. Another critical aspect to consider is the
chosen trading platform. If the Securities and Exchange Commission
(SEC) approves, Franklin Templeton’s Bitcoin ETF will see its
shares being traded on the Cboe BZX Exchange. In determining
Bitcoin’s pricing, the filing indicates a reliance on the Chicago
Mercantile Exchange (CME) CF Bitcoin Reference Rate, specifically
the New York Variant. Bitcoin Begins Rally After Bouncing Off
$24,900 Following the Franklin Templeton spot Bitcoin ETF filing
disclosure, Bitcoin has shown signs of recovery. The top crypto
experienced a slight surge, breaking the downward trend that had
dominated the market in recent weeks. Over the past 24 hours,
Bitcoin has surged by nearly 3%, trading for $26,185 as of this
writing. Particularly, the asset broke away from the stagnant price
zone of around $25,000 observed over the past week.
Complementing its price movement, Bitcoin’s trading volume
experienced a significant uptick. A comparison reveals that while
the trading volume was as low as $1.7 billion last Wednesday, it
increased to $18.4 billion in the past 24 hours. Notably, the
financial industry’s anticipation for the first-ever spot crypto
ETF is palpable. Franklin Templeton’s decision, while bold and
promising, enters a domain where the SEC has shown consistent
reticence. Related Reading: JPMorgan Adjusts Bitcoin’s Production
Cost: What This Means For BTC And Its Miners? Over the last month,
the regulatory body decided to postpone its decisions concerning
proposals for spot Bitcoin ETFs. This delay can be attributed to
the SEC’s current process of sifting through the influx of recent
applications in this category. There hasn’t been a single spot
crypto ETF that has secured the SEC’s endorsement. Featured image
from iStock, Chart from TradingView
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