Two weeks ago, Grayscale won a court battle against the US SEC regarding its application to convert its fund into a Bitcoin ETF. This win seems to have sent ripples of confidence across the industry. Now, another huge fund, Franklin Templeton, has submitted its application to the SEC – as reported by WSJ. Franklin Templeton has about $1.5 trillion worth of assets under its management.
The SEC And Bitcoin ETF Applications
Before that, a number of crypto-oriented entities had submitted applications to the SEC seeking approval of Bitcoin spot ETFs. They include BlackRock, Bitwise, Valkrie, Wisdom Tree, and Fidelity. Despite calls to SEC to make decisions, the regulatory authority has been somewhat withdrawn from rendering an absolute NO or YES decision on any of the applications.
Instead, Gary Gensler and his commission have decided to keep kicking the can down the road. It would appear that the US SEC has a knack for postponing decisions on Bitcoin BTF applications. As a matter of fact, the body has given itself quite a huge window for the final decisions. The final deadline for the approval or rejection of the currently tabled applications is set for March 2024. A lot can happen in 6 months, especially in such a dynamic market as the crypto space. Even so, there’s no guarantee that SEC will approve a Bitcoin ETF.
Is This The New Race?
Gauging from the exponential explosion of interest in Bitcoin investments (and now Bitcoin ETF) by the mainstream investment institutions of late, it’s pretty clear that the race for early entry into the new financial frontier is on, and it’s getting hotter by the day. Just a few years ago, nobody would expect that the then anti-Bitcoin stance held by the likes of BlackRock would suddenly change one day and turn the multi-trillion dollar global asset manager into a key player in the next phase of the Bitcoin crusade.
The incentive to get into the Bitcoin industry by these many institutional funds may have been inspired by the intriguing success stories experienced by the likes of Microstrategy. Microstrategy, led by CEO Michael Saylor, managed to accumulate Bitcoin by circulating funds from within its own financial setup.
Is This A Good Thing?
Many are of the opinion that the approval of even a single Bitcoin ETF would send Bitcoin price to new high levels due to a sharp rise of demand and the asset’s finite supply. The possibilities get even more promising when you take into account that there are multiple large entities currently angling for Bitcoin spot ETFs.
On the other hand, there are those that view the seemingly aggressive attempts by the likes of BlackRock to get and operate a large ETF system as an attempt by these entities to establish some of kind of hegemony in the Bitcoin market. Only time will tell how this will play out.
