Highlights
- Franklin Templeton eyes a new Bitcoin Exchange Traded Product launch in Europe soon.
- In the US, Franklin Templeton’s crypto ETF portfolio is now worth $811 million.
- BlackRock and Bitwise lead in Europe; Franklin Templeton is set to join them.
Franklin Templeton ranks among the world’s top asset managers by size. And according to recent reports, this firm is considering launching a new Bitcoin Exchange Traded product in Europe.
If this proposal moves forward, it could push Bitcoin further up in price and demand. It would also position Franklin Templeton among the growing number of Trad-Fi giants venturing into the crypto space.
This expansion comes at a time when institutional interest in crypto is on the rise. Franklin Templeton monitors Europe’s regulations with no firm plans yet.
Franklin Templeton’s Existing Crypto Presence
Franklin Templeton has around $15 trillion in assets under management. More importantly, this firm is no stranger to the crypto market.
In the United States alone, it has already made strides with its crypto-focused ETF portfolio, which is now valued at around $811 million. The Franklin Bitcoin ETF (EZBC) is the firm’s largest product, and has a staggering $415 million in assets under management.
As such, the company’s experience in the US positions it well to quickly take control of the European market.
However, a spokesperson for the firm has emphasized that Franklin Templeton is taking things as carefully as it can, and will only introduce a product when regulatory conditions become favorable.
Europe’s Expanding Crypto ETP Market
The crypto market in Europe has grown steadily over the last few years, even despite being smaller in scale compared to the US market. This sector is currently valued at around $14.5 billion despite being dwarfed by the $110.4 billion U.S. market.
However, the region is seeing increased activity from asset managers looking to capitalize on the young and promising market. Franklin Templeton’s entry into the European market follows BlackRock’s launch of the Bitcoin ETP (IB1T), which is based in Switzerland.
As it stands, the IB1T holds Bitcoin in cold storage through Coinbase and is already trading on major European exchanges including Deutsche Boerse, Euronext Paris, Euronext Amsterdam and others.
To further emphasize the interest in the European market, Bitwise recently introduced a Solana staking ETP in Europe in December of last year.
The Bitwise Solana ETP (BSOL) allows investors to gain exposure to the cryptocurrency, while earning staking rewards from Marinade (a Solana staking service provider).
What Could This Mean For Bitcoin?
Despite the recent volatility in the price of Bitcoin and the rest of the crypto market, institutional interest is as strong as ever. Bitcoin, for example, currently trades at around $83,000, after declining by around 21% from its January high.
On the other hand, Ethereum has seen a sharper drop, after falling by more than 40% from its December peak. Despite these issues, the price swings have not deterred major players from launching more Bitcoin ETPs.
BlackRock, Bitwise and other companies are already making inroads within the continent.
Franklin Templeton appears ready to join these juggernauts to improve institutional interest in digital assets. As the clarity improves and investor demand rises, more traditional firms are expected to follow suit. For now, Franklin Templeton remains in observation mode and is making sure that it is ready when the time comes to move.
