Franklin

Bitcoin ETF

In an interview with CNBC, <a href="https://coingape.com/breaking-franklin-templeton-updates-spot-ethereum-etf-with-0-19-fee/" rel="noopener noreferrer nofollow">Franklin Templeton</a> CEO Jenny Johnson expressed optimism about the future of U.S. spot Bitcoin ETFs. Johnson believes a new wave of institutional investors will soon enter the market, significantly boosting demand for these financial products. This sentiment comes despite a recent stagnation in ETF inflows and Bitcoin’s price.
<h2 id="strong-franklin-templeton-ceo-optimistic-about-bitcoin-etfs-strong">Franklin Templeton CEO Optimistic About Bitcoin ETFs</h2>
<a href="https://coingape.com/spot-bitcoin-etf-up-54-ytd-to-outrank-rival-tradfi-peers/" rel="noopener noreferrer nofollow">Spot Bitcoin ETF</a>s experienced a robust start, attracting over $13 billion in net inflows within the first three months following their launch on January 11. This influx of capital propelled Bitcoin to a new peak price of $73,700 in March, marking a 60% increase year-to-date. <a href="https://coingape.com/blackrock-spot-bitcoin-etf-hits-20b-in-aum-impact-on-btc-price/" rel="noopener noreferrer nofollow">BlackRock</a>‘s fund, in particular, set records for the highest inflows seen by a newly launched ETF. However, the momentum seemed to wane through April and May, sparking debates about the sustainability of investor interest.
Despite the slowdown, Johnson highlighted that the first wave of adoption has predominantly involved retail investors. SEC filings from April reveal that large investors and firms constitute only about 20% of the assets under management in these new Bitcoin ETFs. Thus, the potential for growth remains, as significant institutions have yet to commit to the Bitcoin market fully.
According to Johnson, many professional money managers still evaluate how to integrate Bitcoin into their investment strategies. She described <a href="https://coingape.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a>‘s current market role as fluctuating between a “risk-on” and “risk-off” asset, comparable in some ways to gold. This ongoing assessment phase suggests that more prominent institutional involvement could be on the horizon, promising a significant increase in demand for Bitcoin ETFs.
While managing one of the smaller Bitcoin spot ETFs in the nation with 6,148 BTC (approximately $440 million), Franklin Templeton offers the lowest permanent sponsor fee at 0.19%. The firm is set to launch an <a href="https://coingape.com/ethereums-institutional-funds-flip-green-ahead-of-etf-launch" rel="noopener noreferrer nofollow">Ethereum ETF</a> with a similarly competitive fee structure. Johnson is optimistic that the low fees will attract more investors, especially those sensitive to cost considerations.
<h2 id="strong-bitwise-cio-sees-political-boost-for-crypto-strong">Bitwise CIO Sees Political Boost for Crypto</h2>
Executives at <a href="https://coingape.com/bitcoin-halving-bitwise-ceo-bullish-btc-pric-hit-100k-post-having/" rel="noopener noreferrer nofollow">Bitwise</a>, another asset management firm with a substantial Bitcoin ETF, also foresee a surge in demand from institutional investors. As existing investors increase their stakes and new investors complete their due diligence, the market could see significant growth.&nbsp;
Additionally, Bitwise CIO <a href="https://coingape.com/bitwise-ceo-dissects-imf-bitcoin-flow-report-here-is-what-to-know/" rel="noopener noreferrer nofollow">Matt Hougan</a> suggested that political developments in Washington, D.C., could catalyze broader crypto market adoption. He posited that a greater understanding of these political shifts could drive the crypto market to new all-time highs.
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 The professional investors who initiated due diligence when the bitcoin ETFs launched in January are coming home to roost. <a href="https://t.co/d9gyGzbVmg" rel="noopener noreferrer nofollow">https://t.co/d9gyGzbVmg</a>
 — Matt Hougan (@Matt_Hougan) <a href="https://twitter.com/Matt_Hougan/status/1798352281022402607?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 5, 2024</a>
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On Tuesday, Bitcoin ETFs demonstrated their resilience and potential for recovery by recording $886 million in inflows, marking their second-best performance to date. This resurgence underscores the ongoing interest and confidence in cryptocurrency as a viable asset class, reinforcing Johnson’s optimistic outlook for the future of Bitcoin ETFs.
Also Read: <a href="https://coingape.com/paxos-launches-yield-bearing-lift-dollar-stablecoin-but-theres-a-catch/" rel="noopener noreferrer nofollow">Paxos Launches Yield Bearing Lift Dollar Stablecoin, But There’s a Catch</a>
The post <a href="https://coingape.com/franklin-templeton-ceo-foresees-new-wave-of-bitcoin-etf-adoption/" rel="noopener noreferrer nofollow">Franklin Templeton CEO Foresees New Wave of Bitcoin ETF Adoption</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Franklin Templeton CEO Foresees New Wave of Bitcoin ETF Adoption

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