Despite a lull in the broader crypto market, the industry is buzzed with excitement as heavyweight financial institutions throw their hats into the ring for a spot Bitcoin ETF. The latest one to join the race is – Franklin Templeton.
In the fast-paced world of crypto, nothing lasts for a very long time. This also applies to the crowd hype surrounding the recent spot Bitcoin exchange-traded fund (ETF) filing by the $1.5 trillion global investment giant.
According to Santiment, the initial excitement has waned, and the diminishing Fear Of Missing Out (FOMO) mirrors the trends seen with past ETF filings.
- Franklin Templeton submitted a filing with the SEC on September 12th proposing a Coinbase-custodied ETF, dubbed the Franklin Bitcoin ETF.
- Shortly after the announcement, Bitcoin witnessed a notable uptick, rising from $25K as market participants jumped to capitalize on a potential major rally.
- This subsequently resulted in a surge in social volume for Franklin following the news, pushing Bitcoin beyond $26K, as observed by Santiment.
- The San Mateo-based company is already an established player in structured investment products such as mutual funds and ETFs.
- Therefore, its decision to pursue a Bitcoin ETF riding the popular wave is not surprising and indicates that the traditional sector is slowly warming to the notion of such an investment vehicle for the US market.
- The blockchain intelligence firm, however, cautioned investors of overreactions whenever news of ETF filings goes mainstream, adding that the latest spike in social volume was similar to BlackRock’s filing.
“Similar to previous crowd hype around ETF news, the FOMO surrounding FranklinTempleton’s filed ETF has died down quickly. ETFs should benefit crypto in the long term. But beware of initial overreactions when this kind of news first goes mainstream.”