Franklin Templeton has announced that users of its Benji Investments platform can now convert USDC stablecoin to U.S. dollars to fund their investment in the Franklin Onchain U.S. Government Money Fund. This development allows institutional wallets to purchase shares represented by BENJI tokens. USDC Conversions Now Available for Franklin Templeton’s Onchain Fund on Benji Global […]
Bitcoin News
Ethereum Spot ETF: Franklin Templeton Launches Fee War With 0.19% Offer
Following the abrupt approval of the Ethereum Spot ETFs by the US Securities and Exchange Commission (SEC), several prospective issuers have now filed amended versions of their S-1 forms. This development follows an initial directive from the commission that necessitated all asset managers vying to launch an Ether Spot ETF to submit their draft S-1 filings on Friday.
Franklin Templeton Opens Floor With 0.19% Sponsor Fee
Among the many S-1 amendments received by the SEC on Friday, Top asset management firm Franklin Templeton caught many spectators’ attention after becoming the first potential issuer of the Ethereum Spot ETF to reveal a sponsor fee.
So far this afternoon @vaneck_us, @InvescoUS/@galaxyhq, and @FTI_DA have submitted S-1 amendments for their #Ethereum ETFs. @Grayscale submitted yesterday and @BlackRock submitted on Wednesday.
Franklin coming in with 0.19% fee. Others haven't disclosed yet. pic.twitter.com/AGEyXqYBSP
— James Seyffart (@JSeyff) May 31, 2024
The New York-based investment firm aims to charge a 0.19% fee on its Ether spot ETF if approved. Therefore, for every ,000 invested in this fund, investors would need to pay .90 directed at covering the management and operational expenses with the ETF.
In any ETF market, sponsor fees are important factors that serve as incentives in attracting investments. With Franklin Templeton being the first issuer to reveal its sponsor fee, it may serve as a precedent as other asset managers may set figures around this value in a bid to entice investors.
Notably, Franklin Templeton also offers the same sponsor fee for its Bitcoin spot ETF which ranks as one of the lowest fees in the specific ETF market. Alongside them, other issuers including VanEcK, Invesco Galaxy, Grayscale, BlackRock, and 21Shares have also turned in their amended S-1 forms to the SEC.
While the 19b-4 forms of these ETF applications were approved on May 23, the processing of the S-1 forms remains critical for any form of trading to commence. Notably, this process may be lengthy as the submitted S-1 forms are subject to comments from the Commission, which will likely necessitate further amendments.
JPMorgan Predicts Lower Demand For Ethereum Spot ETFs
In other news, prominent investment bank JPMorgan has projected the Ethereum spot ETFs to perform far less than their Bitcoin counterparts. According to multiple reports, JPMorgan analysts predict these ETFs can only attract investments of about billion in 2024, which could rise to billion if staking is introduced.
For context, the Bitcoin spot ETFs launched in January are currently valued at .69 billion according to data from SoSoValue. In a recent interview, Bloomberg analyst James Seyffart shared similar sentiments with JPMorgan, highlighting the massive difference in the market cap of Ethereum and Bitcoin.
At the time of writing, Ethereum trades at .777 with a slight gain of 0.45% in the last 24 hours. In tandem, the asset’s daily trading volume is up by 4.80% and valued at .40 billion.
Featured image created with DALL·E, chart from Tradingview
Investment Firm Franklin Templeton: Base to Lead Ethereum L2 Sector, Powered by Socialfi
Franklin Templeton, a global investment behemoth, has praised the development and growth of Base, the Coinbase-incubated Ethereum L2. On social media, the company declared that Base had “hit a home run” due to its popularity with meme coins and socialfi applications, including the pioneering app in the space, Friend.tech. Franklin Templeton Praises Base’s Performance, Comments […]
Bitcoin News
Bitcoin ETF Issuer Franklin Templeton Bullish On Solana (SOL), Foresees It As 3rd Largest Crypto
In the wake of the November 2022 crypto market crash, which saw the bankruptcy and collapse of FTX and other firms, Solana (SOL) has emerged as a standout performer, experiencing a year-to-date price increase of over 560%.
With a market capitalization of billion, Solana has secured its place as the fifth largest cryptocurrency, trailing only Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Tether’s USDT stablecoin.
Despite its substantial growth, asset management giant and Bitcoin exchange-traded fund (ETF) issuer Franklin Templeton anticipates further expansion for Solana as the emerging bull market takes shape.
Solana Poised For Continued Growth
A recent report released by the firm highlights Solana’s strong position to capture the next wave of crypto adoption, solidifying itself as a major crypto asset alongside Bitcoin and Ethereum.
The report emphasizes that Solana’s growth will continue due to several key factors. Notably, the crypto industry witnessed accelerated activity during Q4 2023, with Solana as a focal point for major airdrops within its ecosystem, such as Jito and Pyth.
According to the report, these airdrops generated a wealth effect of over a billion dollars, driving up the value of SOL and other Solana ecosystem tokens, particularly meme coins. This surge occurred concurrently with Bitcoin’s upward trend, providing additional momentum to the Solana ecosystem.
Since then, meme coins have gained significant attention, with a substantial portion of activity occurring on Solana. The network has witnessed the creation and trading of numerous meme coins, with some attaining multi-billion-dollar market caps, including Bonk (BONK) and Dogwifhat (WIF).
The Crypto Industry’s Next Big Breakthrough?
According to the asset manager, Solana has demonstrated significant growth over the past year, which is evident in the network’s increased total fees and decentralized exchange (DEX) volumes. The network’s low fees, transaction latency, and high data throughput relative to other networks have contributed to its success.
Solana’s network effects are expected to strengthen further as its performance improves, positioning it to capture upcoming trends in the crypto space.
The future remains uncertain as crypto enthusiasts ponder the next big thing in the industry. However, Franklin Templeton suggests that there is a strong possibility that Solana could play a pivotal role.
According to the report, the Solana ecosystem anticipates additional airdrops in the coming months, which will continue to enhance the ecosystem’s wealth effect.
Moreover, meme coin activity shows no signs of slowing down on the Solana network, further adding to the bullish sentiment surrounding the cryptocurrency and its ecosystem.
SOL is now attempting to consolidate above the 0 level and has seen a significant 21% increase in the last seven days alone.
Featured image from Shutterstock, chart from TradingView.com
Investment Firm Franklin Templeton Believes Solana Will Become the Third Largest Crypto Asset
Franklin Templeton, a leading investment firm with over .5 trillion in assets under management (AUM), believes Solana has the potential to become the third-largest cryptocurrency in the market. The firm praised the resilience of the project, its continued airdrops, and the work developers have undertaken to fix the network’s recent congestion issues. Franklin Templeton: There […]
Bitcoin News
Blackrock’s BUIDL Fund Overtakes Franklin Templeton to Become Largest RWA Tokenized Offering
Based on the most recent figures, Blackrock’s USD Institutional Digital Liquidity Fund, also known as BUIDL, has expanded to 1.76 million, overtaking Franklin Templeton’s onchain investment vehicle, BENJI, as the largest real-world asset (RWA) tokenized offering. Blackrock’s Digital Fund Surpasses BENJI as Leader in Tokenized Treasury Offerings Blackrock’s BUIDL has now eclipsed all other tokenized […]
Bitcoin News
Bitcoin NFT Market Thrives, Franklin Templeton Remains Bullish, Binance Ends Support
Franklin Templeton’s digital assets division has released a note to its investors introducing Bitcoin-based non-fungible tokens (NFTs), highlighting a surge in activity within the Bitcoin ecosystem.
The asset manager attributes this increased momentum to various factors, including the emergence of Bitcoin (BTC) NFTs called Ordinals, the development of new fungible standards like BRC-20 and Runes, the growth of Bitcoin Layer 2 (L2s) solutions, and the expansion of decentralized finance (DeFi) applications built on the Bitcoin network.
Bitcoin Ordinals Shine
According to the Bitcoin ETF issuer’s report, activity in the Bitcoin NFT space is gaining momentum. In particular, Ordinals have seen a significant increase in trading volume over the past few months.
This growth is evident in Bitcoin’s dominance in terms of trading volume, which surpassed Ethereum (ETH) in December 2023, as shown in the accompanying chart.
In addition, several collections of Bitcoin Ordinals are emerging as dominant players in the NFT market, both in terms of trading volume and market capitalization.
These collections include NodeMonkes, Runestone, and Bitcoin Puppets, which have an aggregate market cap of 3 million, 9 million, and 8 million, respectively. They are the most notable collections.
In terms of trading volume over the past 30 days, the report shows that these three collections recorded trading volumes of million, million, and million, respectively, over the past month.
The asset manager further claimed that what distinguishes BTC Ordinals from NFTs on other blockchains, such as Ethereum or Solana, is that they contain raw data recorded directly on the Bitcoin blockchain. This feature contributes to the attractiveness and growing popularity of Bitcoin Ordinals, as evidenced by market cap and trading volume figures.
Franklin Templeton, known for its involvement in the ETF market, was one of the issuers that launched a spot BTC ETF in the United States earlier this year. Its ETF, which trades under the ticker name “EZBC,” has seen total inflows of 281.8 million since its January 11 launch, according to BitMEX research data as of April 3.
Despite its zero-fee structure, Franklin Templeton’s ETF has seen a significant difference in flows compared to the leading players in the newly approved ETF market, such as Blackrock (IBIT) and Fidelity (FBTC), which have seen flows of over 14 billion and 7.7 billion, respectively.
Binance To Discontinue Support For BTC NFTs
In a recent blog post, crypto exchange Binance announced it would discontinue support for Bitcoin-based NFTs on its marketplace. Less than a year after their introduction, Binance will no longer facilitate airdrops, benefits, or utilities associated with BTC NFTs, citing a need to streamline its product offerings in the NFT space.
Binance states that users who own Bitcoin NFTs are advised to withdraw them from the Binance NFT marketplace via the Bitcoin network before May 18, 2024.
Effective April 18, 2024, users can no longer purchase, deposit, bid, or list NFTs via the BTC network on the Binance NFT Marketplace. Any existing listing orders affected by this change will be automatically canceled simultaneously.
Currently, BTC is trading at ,300, up a modest 3% in the last 24 hours. It is approaching the significant milestone of ,000, a level the cryptocurrency has struggled to maintain several times.
Featured image from Shutterstock, chart from TradingView.com
Ethereum ETF: Franklin Templeton Enters The Fray As ETH Rallies
Wall Street titan and Asset manager Franklin Templeton has applied for an Ethereum Spot Exchange-Traded Funds (ETF) after a struggle to gain approval for their Bitcoin Spot ETF in early January.
Asset Manager Files For Spot Ethereum ETF
Asset managers have gravitated toward the Ethereum spot ETF since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton is the latest manager to apply with the SEC to get approval for this financial product.
The asset manager’s move came after successfully introducing the BTC spot ETFs. This is a notable step toward making more crypto investment products accessible to institutional and individual investors.
James Seyffart, a senior analyst from Bloomberg Intelligence, also shared the update with the crypto community on X (formerly Twitter). Seyffart’s X post included a screenshot of the asset manager’s filing and data regarding other applicants.
According to the post, Franklin Templeton is the eighth company in the cryptocurrency market to file for product approval. Previous asset managers to file applications for Ethereum ETFs include Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy.
Per the official filing, a Delaware statutory trust is how the Franklin Ethereum Trust is set up. The ETF aims to give investors access to ETH in a regulated manner by allowing them to store it directly through a custodian.
It states in the company’s S-1 filing that the proposed “Franklin Ethereum Trust” will hold ETH and “may, from time to time, stake a portion of the fund’s assets through one of the more trusted staking providers.”
Staking is the act of locking up digital currency to maintain the operations of a blockchain network. They plan to stake some of the ETF’s ETH holdings to supplement its income through staking rewards.
The Price Of ETH Rallies Amidst The Update
Franklin Templeton’s spot Ethereum ETF application was made in light of the price of ETH experiencing an uptick. However, no solid proof exists that the latest development impacted the price of crypto assets.
Related Reading: Ethereum ETFs Approval Date Set For May 23, Forecasts Suggest ETH Could Reach ,000
Ethereum was trading at ,661 as of press time, indicating an increase of over 7% in the past 24 hours. Data from CoinMarketCap shows that its market capitalization is also on the upside, marking an increase of over 7%.
Meanwhile, its trading volume has increased significantly by over 172% in the past day. Due to the rise, ETH now ranks third in the entire crypto market by trading volume.
Franklin Templeton Eyes Broad Crypto Expansion Beyond Bitcoin, Foresees More ETP Filings
Franklin Templeton’s Head of Digital Assets, Sandy Kaul, foresees an increase in filings following the recent approval of 11 new spot bitcoin exchange-traded funds. Kaul highlighted that the firm, managing .5 trillion in assets, recognizes the “potential of this whole crypto domain.”
Franklin Templeton Sets Sights on Expanding Crypto Horizons
On social media this past week, the investment management giant Franklin Templeton discussed ethereum (ETH) and solana (SOL) in a series of tweets about crypto and blockchain technology. The company just launched its spot bitcoin exchange-traded fund (ETF) and presently the fund commands 1,160 BTC worth around million. In an interview with Bloomberg’s Kailey Leinz and Sonali Basak, the asset manager’s digital assets sector chief Sandy Kaul said the firm expects more filings to come.
“We see the potential of this whole crypto domain,” Kaul said. “So we will continue to evolve our product range and continue to offer our investors more opportunities to access this innovation and capture the beta of what we call this new protocol economy.” When queried about Franklin Templeton’s inclination towards ethereum (ETH), Kaul did not specify. However, she indicated that the public should expect additional exchange-traded product (ETP) filings from the asset management company. “You can anticipate that you will see more filings from us at some point,” she said.
“There are many coins with large market caps and why just stop with just bitcoin?” Kaul remarked. “I mean there are other opportunities and they are different opportunities. Ethereum is another asset in the crypto domain that offers a slightly different value proposition than bitcoin because it’s more of an app development platform and it fosters its own ecosystem. So that’s a slightly different investment proposition than bitcoin.” The Franklin Templeton executive added:
In all portfolio theory, it is better to have multiple assets in a portfolio rather than a single-asset portfolio. So it would not be reasonable to expect that bitcoin is going to be the only asset that moves into vehicles that make it easier for investors to put money into this space.
The Bloomberg show hosts also inquired with Kaul regarding BTC’s categorization, likening it to a commodity similar to gold. “I think there’s some truth to that because there’s this digital scarcity programmed into Bitcoin where you only get 21 million coins ever going to be created. And you can track every one of those coins through a decentralized process, so no one can control that supply. So I think there’s some good analogies that can be drawn to the gold situation.”
Kaul wrapped up the discussion by touching on BTC’s volatility, observing that the digital asset’s price swings bear a resemblance to those in the commodities market. “I think that the volatility that you see in bitcoin markets is often similar to the volatility that you will see in commodity markets,” Kaul remarked. Responsible trading firms like Franklin Templeton know how to handle that type of volatility, and we get into these markets every day on behalf of our investors. I think that this is a great opportunity for them and there’s a lot they can relate to with this investment, even if they don’t understand bitcoin.”
What do you think about the interview with Franklin Templeton’s digital assets lead Sandy Kaul and her comments? Share your thoughts and opinions about this subject in the comments section below.
In Social Media Buzz, Investment Giant Franklin Templeton Commends Ethereum and Solana’s Advances
Based in San Mateo, the prominent investment management firm, Franklin Templeton, has been actively posting about digital assets on social media following the recent approval of its new spot bitcoin exchange-traded fund (ETF). The firm’s U.S. X account now sports a modified logo featuring Benjamin Franklin with laser eyes. This Wednesday, the account prominently recognized both Ethereum and the Solana blockchains, further expressing that it was “impressed” by the Solana network’s activity in the fourth quarter.
Franklin Templeton Applauds Crypto, Ethereum, and Solana
Since its ETF launch, Franklin Templeton, as of Jan. 17, 2024, oversees 1,160 BTC, as reported by the EZBC web portal. This marks a 2.56% increase in its bitcoin (BTC) holdings, up from 1,131 BTC last Friday. Throughout the past week, the company, managing .5 trillion in assets under management (AUM), has been actively posting about digital assets and sharing memes.
On Thursday, Franklin Templeton’s X account praised blockchain technology. “We believe as blockchains improve in fees and performance, the potential use cases that are unlocked grow exponentially,” the investment manager said. “Improving the economics and experience for the end user cannot be overstated.” In another X post, Franklin Templeton wrote, “Other L1s outside of [Bitcoin, Ethereum, and Solana] have massive potential, and we are continuing to support, monitor, and develop on these networks as they grow and mature.”
.5 trillion AUM institution out here memeing today. https://t.co/LAAUkNlZ0v
— Lyn Alden (@LynAldenContact) January 17, 2024
While it launched a BTC ETF, Franklin Templeton lauded Ethereum and Solana as well. “We are excited about ETH and its ecosystem. Despite the midlife crisis it’s recently experienced, we see a bright future with many strong tailwinds to push the Ethereum ecosystem forward,” the firm remarked on X while also mentioning some of ETH’s pros. As far as Solana, the asset manager said it was “impressed” by the layer one (L1) blockchain. The company stated:
On Solana, we see Anatoly’s vision of a single atomic state machine as a powerful use case of decentralized blockchains, lowering information asymmetry. And we are impressed by all the activity seen on Solana in Q4 2023.
Moreover, the firm’s X account expressed criticism towards private blockchains, stating, “Private blockchains are a rehypothecation of the intermediary.” Indeed, the firm’s social media presence has recently taken a slightly divergent path, actively sharing its perspectives on the digital asset ecosystem. “In crypto, speculation is a feature, not a bug,” the asset manager said in another X post. Franklin Templeton also touched upon Bitcoin’s Ordinals and layer two solutions.
“Ordinals [and] Layer 2 solutions on Bitcoin shouldn’t be ignored. These are vital to solving Bitcoin’s economic security problem and increasing BTC’s utility as a SoV,” the company’s social media account wrote. “Crypto is improving how we interact with each other financially, just as the internet did with information. We intend to participate and lead the development of this future through investing and building,” another social media post explains.
What do you think about Franklin Templeton’s X posts about blockchains, Ethereum, and Solana? Share your thoughts and opinions about this subject in the comments section below.