- Franklin Templeton joined the crowded field vying to launch the first US spot Bitcoin ETF on Tuesday.
- Crypto trading volumes and prices continue to be depressed despite increasing interest from traditional finance firms in Bitcoin and Ethereum ETFs.
Happy Hump Day!
The spot Bitcoin exchange-traded fund race just got a little more crowded. On Tuesday, Global asset manager Franklin Templeton joined the race — competing with the likes of BlackRock and Fidelity — to get the first US-based spot Bitcoin ETF approved. Meanwhile, interest in broader crypto markets is low, as trading volumes are in the doldrums.
Let’s dig into the details!
Crowded field
Franklin Templeton, a global asset manager with over $1.5 trillion in assets under management, filed for a US spot Bitcoin ETF on Tuesday.
There are 12 live applications for Bitcoin ETFs in total as of Tuesday. BlackRock, Fidelity, and Invesco are some of the other household names in traditional finance that have already applied to the US Securities and Exchange Commission to launch similar funds.
“You may think Bitcoin is a scam, but some of the world’s largest asset managers believe it’s worth their time,” Nate Geraci, president of investment advisor The ETF Store, said on X, formerly Twitter, following the filing.
It’s a “who’s who of asset management,” he added, telling his followers that this should “get your attention” regardless of their thoughts of Bitcoin.
Geraci stressed that the important part wasn’t how it would affect the price of Bitcoin, but rather why such established firms are getting involved.
Beyond Bitcoin, there are also 15 live Ethereum futures ETF applications and three spot Ethereum ETF applications. Spot ETFs track the live price of the underlying asset — Bitcoin or Ethereum in this case — while futures ETFs let investors speculate on what the future price will be.
Investors looking for spot ETFs want direct exposure to Bitcoin.
SEC chief Gary Gensler told lawmakers in DC on Tuesday that his agency was actively reviewing the Grayscale case and the other filings for Bitcoin ETFs.
Two weeks ago the Commission was dealt a blow in its efforts to deny Grayscale converting its Grayscale Bitcoin Trust to a spot ETF when an appeals court overturned its decision to reject Grayscale’s proposed rule change.
Despite the fervour around Bitcoin and Ethereum ETFs, interest remains low in the broader crypto market. Spot trading volume clocks in at just $122 billion this month, according to The Block Research.
Last month, centralised exchanges saw just $475 billion in trading volume, a decline of 7.78%, according to crypto research firm CCData. It was the lowest month since March 2019, the firm said.
Spot Bitcoin ETFs have been approved in other countries. For instance, Canada launched a similar fund for over two years now while the first Australian fund was launched in 2022.
Crypto market movers
- Bitcoin was flat over the past day as it traded around $26,000. Investors will look to US inflation data for August, released today at 1:30 London time. Headline inflation is expected to have risen by 0.6%, according to investment bank Nomura.
- Ethereum slipped 0.7% to trade just below $1,600.
What we’re reading
- Compound founder Robert Leshner says ‘institutions aren’t coming’ to DeFi — DL News
- A crypto comedy night and the wristband black market at Token2049 — DL News
Adam Morgan McCarthy is DL News’ London-based Markets Correspondent. Got a tip? Reach out at adam@dlnews.com.
