Franklin Templeton Expects Its Spot Bitcoin ETF To Gain Traction As Financial Advisors Become More Familiar With Product

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Today’s Cryptocurrency Headline

While much has been made of spot bitcoin ETF trading volumes and the net inflow of fresh capital after they were approved and began trading earlier this month, the lion’s share of buying and selling has been spread over a select few of those instruments. Franklin Templeton’s spot bitcoin ETF has, so far, not been part of that elite group of products offered by BlackRock, Fidelity, and Grayscale, the three of which have accounted for about 90% of total trading volume. But the Wall Street firm, founded in 1947, remains confident that its spot bitcoin ETF product will become popular among financial advisors and investors.”It’s just a matter of time … as education moves forward about how these assets complement and help deliver potentially better long-term solutions alongside other assets in their portfolio,” Franklin Templeton Head of Digital Assets Roger Bayston told The Block. “That’s something that takes time.”Franklin Templeton’s core business is partnering with financial advisors and wealth platforms to provide solutions, products, and services they can deliver to their clients, said Bayston, who believes his firm will emerge as a “digital asset provider of choice” as the investment community becomes more familiar with spot bitcoin ETFs.

BingX’s Bitcoin Chart

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Bitcoin’s price traded below the $40,000 support on Jan. 18 for the first time in 50 days, and the upcoming $4.5 billion BTC monthly options expiry on Jan. 26 might hold the key to whether the downtrend will continue. Oddly enough, the U.S. stock market reached an all-time high on Jan. 22, indicating that whatever held back Bitcoin’s performance is unlikely to be related to the macroeconomic scenario. Some analysts argue that most of the selling pressure comes from the Grayscale GBTC, which experienced significant outflows since its conversion to a spot exchange-traded fund (ETF) on Jan. 11. The instrument holds over $25 billion in assets, and despite being listed since 2015 in the form of a Trust fund, its investors were previously unable to request redemptions.

Since the spot ETF trading debut on Jan. 12, Bitcoin’s downside coincides with the U.S. 2-year Treasury yield bottoming at 4.12%. From there, investors no longer sought protection in fixed income as the yield soared to the present 4.39%, reversing a 3-month movement. According to Yahoo Finance, the most likely explanation is the recent economic indicators, which suggested that “the Federal Reserve (Fed) may not shift to a less restrictive posture as soon as previously expected.”The answer to whether the Fed will start cutting interest rates over the next couple of months depends on the gross domestic product data for the fourth quarter on Jan. 25 and the Personal Consumption Expenditures index (PCE) on inflation on Jan. 26. Unfortunately for Bitcoin investors, the longer the interest rates remain high, the less the incentives for investors to seek exposure in commodities—as opposed to stocks, for instance, which tend to pay dividends. In essence, Bitcoin investors will have to wait until 8:00 am UTC to conclude if bulls have really blown billions of dollars worth of call (buy) options based solely on the expectation of a price rally after the spot ETF approval. The support level is at $38,800, and the resistance level is at $41,000.

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