Bloomberg Analyst Reveals One Absent Piece in Franklin’s Bitcoin ETF Race

A recent tweet from Bloomberg analyst, James Seyffart has brought to light a crucial aspect of Franklin Templeton’s Bitcoin Exchange Traded Fund (ETF) proposal submitted to the US Securities and Exchange Commission (SEC)

The Missing Piece in Franklin’s ETF Filing

While Franklin, a top investment management firm filed a prospectus on September 12, signaling its intent to launch a Bitcoin ETF, Seyffart noted that it has not yet filed the 19b-4 form, which is a key step in the approval process. This has led Seyffart to question what might be holding up the process. 

James Seyffart’s tweet has ignited a sense of intrigue within the crypto community. As the race to launch the first Bitcoin ETF continues, Franklin’s approach and the reasons behind the delay in its 19b-4 filing have become subjects of speculation and discussion.

Interesting (to me at least): Franklin (@FTI_US) kinda entered the #Bitcoin ETF race on Sept 12 when they filed a prospectus but they still haven't filed a 19b-4 which is what actually gets the clock started with the SEC. What are they waiting for???🤔 pic.twitter.com/VlOOcZAVUM

— James Seyffart (@JSeyff) September 26, 2023

Meanwhile, in the race to get the first Bitcoin ETF approved by the U.S. SEC, companies like VanEck, Grayscale, and BlackRock have been at the forefront. These firms have submitted various proposals, each with its unique approach to offering Bitcoin exposure through ETFs. 

However, the SEC is yet to approve any of these proposals, citing concerns over market manipulation and investor protection.

Possible Reasons for the Delay

The delay in filing a 19b-4 application may be due to various reasons. The firm may be taking extra time to ensure that its application is comprehensive, addressing all regulatory concerns and market risks adequately. 

Given the SEC’s historical concerns about market manipulation and investor protection in the crypto space, companies are under pressure to submit robust proposals that can withstand regulatory scrutiny.

Another possibility is that Franklin Templeton is strategically timing its 19b-4 filing. In the highly competitive Bitcoin ETF race, companies may be looking for the right moment to submit their applications to gain a competitive advantage or respond to developments in the market.

James Seyffart’s tweet highlights the intrigue surrounding Franklin’s approach to entering the Bitcoin ETF race. Ultimately, the timing and content of Franklin’s application will be closely watched by both the crypto community and regulators, as it could be a significant factor in determining the success of its Bitcoin ETF proposal.