Franklin Plans to Push Tokenized Assets Into Traditional Funds
Tokenization
”Franklin Templeton is preparing to put tokenized assets inside conventional investment funds after receiving what the firm says is the first US regulatory clearance for digitally native products to be used within traditional funds. The firm plans to use its tokenized money-market fund inside ETFs and mutual funds, either as a holding or as collateral, according to a letter posted by the Securities and Exchange Commission and a company executive. That means investors in otherwise conventional funds could end up with tokenized assets in their portfolios without having sought them out. The move — expected to take effect as early as the fourth quarter, though it could happen sooner — marks a new stage in Franklin’s blockchain strategy. The asset manager has already worked to put traditional ETFs onchain and distribute them through crypto wallets. Now it is bringing tokenized assets inside the funds themselves, with the potential to optimize liquidity, cash holdings and yield.”
Source: Bloomberg
Spot Bitcoin ETFs Report $517 Million in Net Inflows, Largest in 3.5 Months
ETPs
”Spot bitcoin exchange-traded funds in the U.S. reported $517.19 million in net inflows on Wednesday amid a notable rebound in the cryptocurrency market. According to data from SoSoValue, eight out of 12 bitcoin ETFs recorded net inflows on the day, led by $284.7 million worth of inflows into BlackRock's IBIT. Ark & 21Shares' ARKB logged $77.7 million in inflows, and Fidelity's FBTC reported $62.4 million. Total inflows into the bitcoin funds were the largest since May 4 — three months and 16 days ago. Analysts concurred that the sizable net inflows resulted from positive news that drove up the crypto market after months of downturn.”
Source: The Block
Crypto Will Get Rules One Way or Another, CFTC Head Says
Regulation
”The crypto industry will get market structure rules even if Congress fails to pass landmark legislation, the head of the Commodity Futures Trading Commission said Thursday. 'It’s really important that we have market structure,' Chairman Michael Selig said in an interview with Bloomberg Television ahead of the agency’s inaugural Innovation Advisory Committee meeting. 'We can do that through rules, we can do that through laws.' The CFTC chairman said the agency is weighing a number of potential crypto rules, but is waiting to see what happens with the so-called Clarity Act. That bill has stalled in the US Senate amid a fight over ethics provisions spurred in part by President Donald Trump’s $1.4 billion crypto windfall.”
Source: Bloomberg
CME CEO Terrence Duffy Trades Barbs With CFTC's Selig and Kalshi's COO Over Prediction Market Oversight
Prediction Markets
”A Commodity Futures Trading Commission committee meeting exposed a sharp divide between the worlds of traditional finance and prediction market platforms and how the rapidly growing sector should be regulated. On Thursday during a CFTC Innovation Advisory Committee meeting, CME CEO Terrence Duffy raised concerns about prediction-market contracts, arguing that some markets are vulnerable to manipulation. Duffy has previously called for greater oversight, as CME has embraced the sector — its derivatives exchange has launched more than 100 million event contracts since launching them last year. Duffy said he was particularly concerned about the number of contracts that have been self-certified and the potential for manipulation in certain markets, including contracts tied to what President Donald Trump would say during his State of the Union address and when Venezuelan President Nicolás Maduro would be ousted.”
Source: The Block
BitGo Secures South Korea Virtual Asset License, Says It's the First Global Crypto Company to do so
Custody
”BitGo Holdings, a crypto custody company, said it became the first global cryptocurrency firm to secure a virtual asset services provider license in South Korea, giving it access to institutions in one of the world's most active crypto populations. The company, which went public on the New York Stock Exchange (NYSE) earlier this year at a $2 billion valuation, established a local entity, BitGo Korea, to add to existing regulated units in the U.S., Singapore, Germany, and Dubai. The Korea Financial Intelligence Unit (KoFIU) approval covers virtual asset custody and transfer services for institutional and enterprise clients, BitGo said Wednesday. South Korea's retail crypto traders are considered to be particularly active, with daily volumes on local exchanges regularly outpacing those of stocks during peak periods. Now, the institutional crypto market is drawing increasing attention as retail trading is hit by a weak global crypto market that saw volumes drop and the two largest exchanges, Upbit and Bithumb, report slumping first-half retail trading profit.”
Source: CoinDesk
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Notable Events Next Week
- Wed: U.S. Q2 GDP (Second Estimate) – US
- Wed: U.S. July PCE Inflation – US
- Thu-Sat: Jackson Hole Symposium – US
- Fri: CME SOL & XRP Monthly Options Expiry – US
Themes of the Week
Tweet of the Week
https://x.com/SECGov/status/2089784594409103507
