Franklin Templeton, a prominent financial services firm, remains hopeful about the future prospects of its spot Bitcoin ETF, despite not yet achieving substantial trading volumes compared to industry giants like BlackRock, Fidelity, and Grayscale.
Although these established players currently dominate around 90% of the total trading volume in the spot Bitcoin ETF space, Franklin Templeton is optimistic that its product will gain traction. The potential for increased interest arises as financial advisors and investors become more acquainted with the offering, according to a report by crypto news outlet The Block.
Roger Bayston, Head of Digital Assets at Franklin Templeton, conveyed confidence in the spot Bitcoin ETF’s eventual popularity, emphasizing the importance of education in demonstrating how these assets can complement existing investment portfolios. He remarked:
“It’s simply a matter of time […] as education progresses regarding how these assets can enhance and potentially offer better long-term solutions alongside other assets in their portfolio.”
Bayston emphasized the uniqueness of the product and the fiduciary obligations of platforms in selecting providers to ensure clients achieve optimal long-term outcomes.
According to data reported on Tuesday by Bloomberg Intelligence’s senior ETF analyst, Eric Balchunas, Franklin Templeton’s ETF, identified by the ticker EZBC, ranks third from the bottom in terms of total flows, with $56 million in net inflows.
Leading among the new spot Bitcoin ETFs is the BlackRock/iShares fund, boasting $1.69 billion in net inflows.
Franklin Templeton’s core business involves collaborating with financial advisors to offer solutions to end clients.
Bayston’s perspective aligns with forecasts from the independent investment bank and asset management firm Needham, which stated last month that Registered Investment Advisors (RIAs) are likely to be the driving force behind Bitcoin ETFs once they receive approval in the US.
Franklin Templeton to Become Crypto ‘Provider of Choice’
During the interview with The Block, Bayston expressed his vision for Franklin Templeton to become a “digital asset provider of choice” as familiarity with spot Bitcoin ETFs increases within the investment community.
Despite starting with relatively modest trading volumes, Bayston expressed confidence that Franklin Templeton will distinguish itself among competitors.
He highlighted the firm’s dedication to digital assets, including its involvement in the public blockchain community, as a significant distinguishing factor. According to Bayston, this approach grants the firm a unique insight into the blockchain infrastructure compared to other providers.
Bayston further emphasized, “The notion that we offer comprehensive investment services and research across the entire digital asset space is yet another differentiating factor.”