The S-1 registration statement was filed following the SEC’s postponement of decisions regarding spot Bitcoin ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco on August 31st, and a court ruling on August 29th that mandated the SEC to review Grayscale’s registration.
According to the registration, the fund will be structured as a trust. Coinbase will serve as the custodian for Bitcoin, and the Bank of New York Mellon will be the cash custodian. The fund’s shares will trade on the Cboe BZX exchange. The SEC’s next approval deadline to decide on the registration is October 16th.
Franklin Templeton highlights the risks stemming from regulatory uncertainties, stating:
“The U.S. digital asset market exists in a state of regulatory uncertainty, and adverse legal or regulatory developments may significantly harm the value of Bitcoin or the Shares, such as by prohibiting, restricting, or imposing onerous conditions or banning the use of Bitcoin, mining activities, digital wallets, provision of services related to the trading and custody of Bitcoin, Bitcoin network operations, or the digital asset market in general.”
Digital asset index provider CF Benchmarks, headquartered in the UK, will provide daily pricing based on Coinbase, Bitstamp, iBit, Kraken, Gemini, and LMAX Digital exchanges. Trades will be indexed at five-minute intervals.
Franklin Templeton manages assets valued at $1.5 trillion.