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Franklin Templeton

Franklin Templeton Seeks SEC Approval for Crypto Index ETF

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Franklin Tеmplеton, а prominеnt аssеt mаnаgеmеnt firm with $1.6 trillion in аssеts undеr its wаtch, filеd аn S-1 аpplicаtion with thе U.S. Sеcuritiеs аnd Exchаngе Commission (SEC) on August 16. This аpplicаtion sееks pеrmission to lаunch а nеw Crypto Indеx Exchаngе-Trаdеd Fund (ETF) thаt will initiаlly focus on Bitcoin аnd Ethеrеum.

Thе proposеd ETF, nаmеd thе Franklin Crypto Indеx ETF, аims to rеplicаtе Bitcoin’s (BTC) аnd Ethеrеum (ETH) pеrformаncе, providing invеstors with broаd еxposurе to thеsе lеаding digitаl аssеts. Thе S-1 filing dеtаils thаt thе ETF will follow thе CF Institutionаl Digitаl Assеt Indеx, focusing primаrily on Bitcoin аnd Ethеrеum. Nonеthеlеss, thе ETF’s frаmеwork аllows for thе potеntiаl аddition of othеr cryptocurrеnciеs, dеpеnding on futurе rеgulаtory chаngеs аnd mаrkеt trеnds.

Franklin Leads the Charge in Crypto Index ETFs

As аn еаrly plаyеr in thе еxpаnding fiеld of crypto indеx ETFs, thе Franklin Crypto Indеx ETF еntеrs а growing mаrkеt, following thе lаunch of Bitcoin аnd Ethеrеum ETFs еаrliеr this yеаr. It will contеnd with thе Hаshdеx Nаsdаq Crypto Indеx ETF, which wаs thе pionееr in sееking rеgulаtory аpprovаl for а crypto indеx Exchаngе-Trаdеd Fund.

Kаtаlin Tischhаusеr, thе invеstmеnt rеsеаrch lеаdеr аt crypto bаnk Sygnum, еmphаsizеd thе importаncе of this dеvеlopmеnt. Shе notеd, “Thе nеxt logicаl stеp is indеx ETFs bеcаusе indicеs аrе еfficiеnt for invеstors — just likе how pеoplе buy thе S&P 500 in аn ETF. This will bе thе sаmе in crypto.” At prеsеnt, crypto indеx ETFs аrе confinеd to Bitcoin аnd Ethеrеum, аs thеsе аrе thе solе digitаl аssеts аpprovеd by thе SEC for ETF inclusion.

As thе mаrkеt for crypto ETFs еvolvеs, thеrе is ongoing intеrеst in introducing nеw singlе-аssеt ETFs. Tischhаusеr pointеd out thаt whilе thеrе is somе intеrеst in products likе а Solаnа (SOL) Exchаngе-Trаdеd Fund, dеmаnd rеmаins subduеd. This highlights thе currеnt еmphаsis on Bitcoin аnd Ethеrеum аs thе primаry digitаl аssеts for еxisting аnd futurе indеx ETFs.

Grаyscаlе, thе lеаding crypto fund mаnаgеr with $25 billion in аssеts, hаs аlso shown еnthusiаsm for thе еxpаnsion into crypto indеx Exchаngе-Trаdеd Funds. Dаvе LаVаllе, Grаyscаlе’s globаl ETF hеаd, commеntеd on August 12, “Wе’rе going to sее а numbеr of morе singlе аssеt products, аnd thеn аlso cеrtаinly somе indеx-bаsеd аnd divеrsifiеd products.”

For thе Franklin Crypto Indеx ETF to bе trаdеd on public еxchаngеs, it must rеcеivе аpprovаl from thе SEC аnd sеcurе а listing on а mаjor plаtform likе Nаsdаq. This rеgulаtory аpprovаl is pivotаl for thе ETF’s mаrkеt еntry аnd its potеntiаl influеncе on invеstmеnt strаtеgiеs in thе cryptocurrеncy sеctor.

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Political Shifts Won’t Stop Bitcoin’s Ascent: Arthur Hayes

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In a recent interview, Arthur Hayes, co-founder of BitMEX and a prominent figure in the crypto world, discussed a range of topics, including the potential impact of political changes on cryptocurrency, the evolution of the crypto industry, and Bitcoin’s future.

Hayes, who began his finance career in September 2008 on Deutsche Bank’s trading floor in Hong Kong, shared how the abrupt collapse of Lehman Brothers marked a dramatic shift in the financial landscape. It was during this time of transformation that Hayes discovered Bitcoin, which he described as aligning perfectly with his views on the corrupt banking system.

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A decade later, Hayes reflects on how the crypto industry, while vibrant and diverse, is increasingly mirroring the traditional finance sector it once sought to disrupt. Major financial institutions like BlackRock and Franklin Templeton now offer accessible investment options in cryptocurrencies, and Fidelity is pushing to include Bitcoin in American pension funds.

Despite this growing mainstream acceptance, Hayes believes the core spirit of the crypto community remains unchanged. Addressing current political dynamics, Hayes expressed skepticism about the role of politicians in advancing cryptocurrency interests.

He noted that regardless of whether Donald Trump or Kamala Harris wins the election, the fundamental challenges of governmental opposition to crypto remain. Hayes argued that the entrenched financial institutions and regulatory bodies are significant obstacles that any new administration would struggle to overcome.

Bitcoin’s Resilience Against Monetary Expansion

On the topic of Bitcoin and monetary policy, Hayes was resolute in his belief that regardless of who is in power, the continuous expansion of money supply is inevitable. This monetary inflation, he argues, will ultimately benefit Bitcoin. Despite the volatility and risks associated with the cryptocurrency, Hayes remains bullish on its long-term prospects.

Regarding the SEC and its chairman, Gary Gensler, Hayes suggested that the real issue is not Gensler himself but rather the broader regulatory framework. He criticized the focus on individual regulators instead of addressing the systemic issues within the regulatory environment.

Hayes also shared his views on the idea of a Bitcoin reserve, noting that while it’s a compelling concept, it’s highly improbable given the current political and economic landscape. He believes that while Bitcoin and gold could offer a strategic advantage, the U.S. government is unlikely to prioritize Bitcoin over gold.

However, looking ahead, Hayes is optimistic about Bitcoin’s potential to reach new highs, driven by global monetary changes and massive debt levels, despite the resistance to change from entrenched financial powers.

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VanEck Leads the Way with Amended S-1 for Spot Ethereum ETF

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In a move that might prove pivotal in shifting cryptocurrency market fortunes, Ethereum exchange-traded funds see action as major financial players jockey for approval. Early Monday, VanEck filed an amended S-1 registration statement for its spot Ethereum ETF, detailing minor changes to custody arrangements.

Following the lead from VanEck, several other companies, including 21Shares, BlackRock, Fidelity, Franklin Templeton, and Grayscale, made their filings with the regulator a little later on in the day. Market insiders speculate that trading for these ETFs could commence around the 15th of July.

Bloomberg ETF analyst Eric Balchunas provided insight into the wave of filings, noting that VanEck’s S-1 amendment was the first to be submitted. “VanEck already had their fee structure in place, so there wasn’t much new in their filing. It’s more about putting the ball back in the SEC’s court. We expect the rest of the filings to come in today, except for Bitwise, who completed theirs last week,” Balchunas explained

The journey for these spot Ethereum ETFs began on May 23 when the Securities and Exchange Commission (SEC) approved the issuers’ 19b-4 applications. However, before these ETFs can begin trading, the SEC must also approve the S-1 registration statements. July 15 is the anticipated trading date.

Golem Sells 24,400 ETH Worth $72M Despite Market Uptick

Contrary to recent optimistic changes in the cryptocurrency market, data from Lookonchain has pointed to an overwhelming move from Golem. In the past three days, Golem has sold 24,400 ETH (around $72 million in value) on leading cryptocurrency exchanges such as Binance, Coinbase, and Bitfinex

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Currently, Golem still holds a substantial amount of 127,634 ETH, worth around $372 million. Golem, which raised 820,000 ETH during its ICO in November 2016 when the price of Ethereum was just $10.20, has seen its holdings grow tremendously in value as ETH’s price soared.

Analyst Predicts ETH Could Surpass $5,000

Renowned crypto analyst Trader Tardigrade has shared an optimistic forecast for Ethereum’s price trajectory despite Golem’s recent sell-off. According to him, Ethereum is forming a second Descending Triangle pattern, which historically suggests a potential breakout within the coming months. He predicts that during the next bull run, Ethereum could surpass the $5,000 mark.

The recent sell-off did not hamper the ETH price; at the time of writing, Ethereum is trading at $3,093.24, with a 24-hour trading volume of $34.16 billion. The market capitalization stands at $371.61 billion. The price of ETH has risen by 2.50% during the last 24 hours.

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VanEck Leads the Way with Amended S-1 for Spot Ethereum ETF 4

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Ethereum ETF: Frank Templeton Guns for the Lead

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Better late than never. Global asset manager Franklin Templeton has applied for a spot Ethereum ETF, becoming the latest to step into the fiercely competitive ETF race. The $1.5 trillion-valued firm recently filed a Form S-1 registration statement with the SEC, joining a galaxy of ETF applicants that include Ark and 21Share, BlackRock, Grayscale, VanEck, etc. While the above-mentioned AUMs filed their Spot Ethereum ETF applications in Q4 2023, FTI’s move has once again set the ball rolling in the regulator’s court.

The SEC, on the other hand, has so far chosen to push back applications, adopting the same tactic with Invesco and Galaxy’s Ethereum ETF as of the latest update. Industry experts have expressed no surprise, noting that more delays will continue to happen in the coming months. ETH ETF’s crucial deadline now rests around May 23rd, which is also the cutoff time for VanEck, according to popular crypto investor Lark Davis. 

He even predicted that the ETH price would go up to $4000 by then. Others, like Stevan Nerayoff, shared a more radical outlook. Nerayoff, a former Ethereum consultant, stated, “SEC chair Gary Gensler’s indirect approval for Prometheum Inc. to designate ETH as a security that effectively endorses an ETF covertly.”

Here is the list of the Spot Ethereum ETF filings.

Ethereum
Source: James Seyffart

Franklin Templeton’s filing has undoubtedly sparked a buzz in the community. Earlier, FTI’s spot Bitcoin exchange-traded fund received the green light from the Securities and Exchange Commission [SEC].

Ethereum Validators Line In

In anticipation of the upcoming Dencun upgrade, staking among Ethereum validators has marked a substantial increase. More entities are rushing in to participate, leading to a rise in the validator entry queue. This is corroborated by data where the figure stood at 6187, representing over 200k Ether worth nearly $500 million, at press time. The entry of new players leads to a network build-up-like scenario that might take a little over 48 hours to be sorted out.

It is to be noted that there are limitations on the number of new validators that can join the network per epoch. One Ethereum epoch lasts roughly 6.4 minutes. These new players are called validators and can be either individuals or entities that need at least 32 Ether to stake in the network, enabling them to participate in running Ethereum’s proof-of-stake consensus blockchain.

Solana ETF Soon? FTI’s Bold Hint

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Franklin Templeton [FTI] has set its sights on Solana, praising the blockchain’s vision and accomplishments in a recent post. The global investment firm expressed admiration for Solana’s unique approach to decentralized blockchains, emphasizing its potential to reduce information asymmetry through a single atomic state machine. Notably, FTI lauded the diverse activities on the SOL blockchain during Q4 2023, including developments in decentralized finance [DeFi], meme coins, NFT innovation, and the emergence of the trending Solana meme coin, Dogwifhat.

The post triggered speculation within the crypto community, with attention drawn to the possibility of Franklin Templeton exploring its next exchange-traded fund [ETF] on the SOL network. A user pointed out the correlation between the ETF tweet and the launch of the BWIF meme coin on Solana, suggesting a potential connection.

The meme coin gained rapid popularity amidst SOL’s bullish price action, spurred by the recent approval of the Bitcoin spot ETF. Users speculated that FTI’s tweet could be a teaser for the inclusion of Solana in its ETF filing, hinting at a significant development in the pipeline.

Solana
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While Franklin Templeton previously faced criticism for changing its profile picture to a laser-eyed symbol, the company responded humorously, “You are unsure how to feel about Laser Eye Ben? Just think instead of Ben wif hat.”

The name Ben is in honor of Benjamin Franklin, for whom the company is named. and the wif hat is a reference to the trending Shiba Inu puppy donning a knitted hat.

Solana In Still Waters

Despite the positive sentiments, SOL’s price experienced a 5% decline in the past seven days, raising questions about the immediate impact of FTI’s tweet on the cryptocurrency’s market performance. Some analysts believe that the fifth-biggest altcoin may not necessarily depend on the ETF narrative for price appreciation, suggesting a unique trajectory for the blockchain platform.

Coinbase CEO Brian Armstrong shared optimism about Solana’s future, stating that major altcoins like SOL could find a place in future ETF lineups. He further envisioned the possibility of crypto index funds resembling traditional indices like the S&P 500, catering to various subsets of the crypto market such as DeFi, NFTs, and staking.

As the crypto community awaits further developments, Franklin Templeton’s interest in Solana adds an intriguing layer to the ongoing narrative of blockchain innovation and ETF possibilities in the crypto space.

Bitcoin: SEC Greenlights Franklin Templeton’s Spot ETF Amidst Congressional Pressure

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Franklin Templeton’s application for a spot Bitcoin exchange-traded fund received acknowledgment from the Securities and Exchange Commission [SEC] in a historic and pivotal move. This development holds immense significance for the AUM, managing assets worth up to $1.5 trillion, as it solidifies its presence in the asset management sector. With the filing of a 19b-4 form for their spot Bitcoin ETF proposal and the subsequent approval, Franklin Templeton has set the regulatory wheels in motion.

The 19b-4 form serves as a formal notification to the Commission regarding a proposed rule change by a self-regulatory organization [SRO]. Essentially, it is a document that informs a non-governmental entity exercising regulatory authority over a particular industry or profession about changes being proposed.

This announcement arrives at a time when the SEC is also deliberating on applications for spot crypto ETFs from various entities, including Hashdex. Franklin Templeton’s application stands out due to the company’s substantial footprint in the asset management landscape.

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Image Credit: Bitcoin Archive

Over the past few days, the SEC has come under intense scrutiny for its stance on spot ETF products. Notably, the regulator has announced delays in its decisions regarding Ethereum ETF applications from VanEck and ARK. It is essential to recognize that the SEC has a maximum of 240 days from the date of filing in the Federal Register to either approve or deny an ETF application.

This timeline places the decision date for these proposed funds in late May 2024. However, the regulator has the authority to solicit additional public input during several interim deadlines, potentially further extending the final verdict.

Bitcoin: SEC’s Gensler Doesn’t Hold Back

On September 26, U.S. Representatives Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres shot a letter to Gary Gensler, the chief of the U.S. securities watchdog, accusing him of displaying bias against spot Bitcoin exchange-traded products. They pointed to the legal precedent set by Grayscale Investments, which won a review of its own ETF offering.

The four lawmakers asserted that following the Grayscale court decision, there is “no reason to continue to deny” applications for spot crypto ETFs, emphasizing that the SEC’s rationale was deemed “arbitrary and capricious” in approving investment vehicles linked to Bitcoin futures. Despite the ongoing legal battles between his agency and crypto firms, Gensler has maintained a tight-lipped stance on the SEC’s approach to spot Bitcoin ETFs.

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In fact, he upheld his confrontational stance against crypto “hucksters” during congressional testimony on September 27, choosing not to address the industry’s pressing questions. Gensler argued that digital asset companies had been recklessly handling customer assets, fueling further speculation about the SEC’s intentions in the evolving cryptocurrency landscape.