Bitcoin Price Recovers as Franklin Templeton Files for Spot BTC ETF
Franklin Templeton, a $1.45 trillion asset manager, has filed for the first time with the SEC for a bitcoin ETF.
Franklin Templeton Investments, an American investment firm and Mutual funds management company, drew attention on Tuesday as the firm filed for Spot Bitcoin ETF for the first time.
The filing for the Spot BTC ETF came just after a month of BlackRock and Fidelity BTC spot ETF filling as US SEC (united States Security and Exchange Commission) got another file to approve as Bitcoin ETF fillings are on the rise.
The filling again sparked a few green candles on Bitcoin's down trending price action leading to investors jumping directly on the asset to gain from the ongoing bearish stance.
Bitcoin Spot ETF Filling Terms
Franklin Templeton's spot bitcoin ETF file contains terms that are similar to those seen in recent filings from other significant companies in traditional finance. According to the filing, Coinbase (COIN) would operate as the fund's custodian of Bitcoin.
Furthermore, the ETF will be traded on the Cboe BZX Exchange and will be priced using the CME's CF Bitcoin Reference Rate-New York Variant.
Notably, this is Franklin Templeton's first attempt to launch a Bitcoin ETF product. The firm manages over $1.45 trillion in assets.2 This is also noteworthy given that Jenny Johnson, CEO of Franklin Templeton, has previously stated that "Bitcoin is the greatest distraction from the greatest disruption in financial services, which is blockchain."
Bitcoin ETF Fillings Till Now
Several major players in the asset management industry are gearing up to step into the Spot Bitcoin ETF arena. Here's a glance at their colossal Assets Under Management (AUM):
- BlackRock: $10T
- Fidelity: $4.5T
- Franklin Templeton: $1.5T
- Invesco Galaxy: $1.5T
- WisdomTree: $87B
- VanEck: $61B
- GlobalX: $40B
- ARK Invest: $14B
- Bitwise: $1B
- Valkyrie: $1B
Combined, these financial powerhouses command an impressive total AUM of $17.7 trillion, underscoring the significant interest and potential they see in Spot Bitcoin ETFs.
US SEC Chairman Gary Gensler Slams Spot Bitcoin ETF Fillings
Not everything is fine with Bitcoin ETF fillings, During a Senate hearing with lawmakers today, US Securities and Exchange Commission Chair Gary Gensler continued to slam the crypto industry but refused to give any hints on where the regulator would go with the long list of Bitcoin spot exchange-traded fund (ETF) applications that it is currently reviewing.
Senator Bill Hagerty (R-TN) asked Gensler what the SEC needed to see in a file to authorise a spot Bitcoin ETF, referring to a federal judge's surprise decision last month to side with Grayscale over the SEC.
The SEC is "still reviewing that decision," Gensler told the Senate Banking Committee on Tuesday, adding,
"We have multiple filings around Bitcoin exchange-traded products, so it's not just that one you mentioned, but multiple others who we're reviewing." I eagerly await the recommendations of the staff."
The news around Bitcoin Spot ETF fillings created hype on Wednesday morning as Bitcoin traded upwards from the last session.
Bitcoin Price Analysis
As per CoinStats, In the past 24 hours, Bitcoin's price has experienced a modest rise, reaching $25,942.32. The current live market cap stands at $505 billion, with a circulating supply of 21 million BTC coins. Notably, Bitcoin has a maximum supply volume of 21 million, underscoring its scarcity. The cryptocurrency has also witnessed a robust 24-hour trading volume of $29 billion.
Source: CoinStats
Coming to the daily chart analysis, Bitcoin previously made a breakout from the triangle pattern which caused the price to slide below the $26000 support. Looking at the chart closely, after the breakout, Bitcoin's price action could be seen propagating through a declining channel pattern which suggests that there's still some bearish movement happening.
However, the declining channel pattern always ends up with a bullish strike in the long term. Investors may have to wait to see the price breaking the pattern.
Additionally, the 14-day RSI is at the 44 mark which is considered as a neutral zone. The positive sign for the RSI is that it's making an upward trajectory which generally sums up the thought that Bitcoin bulls are back to retain the price. However, it's still unclear where the price will go.
Source: TradingView
Conclusion
In conclusion, Bitcoin is facing a bullish stance as the price reacts positively to the Franklin Templeton Spot Bitcoin ETF filling. Bulls are back to retain the $26K zone as the pressure increases. If the US SEC by any chance approves the Bitcoin ETF fillings, we may expect a price rally soon.
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