Next Bitcoin ETF Wave Coming

Franklin Templeton CEO Jenny Johnson predicts that the current phase of Bitcoin exchange-traded fund (ETF) adoption is only the beginning. She suggests another wave is coming as institutions become more comfortable with Bitcoin ETFs.

Her insights emphasize the growing potential of Bitcoin ETFs and the transformative impact of tokenizing real-world assets.

Institutional Adoption and Future Potential of Bitcoin ETFs

In a recent interview with CNBC, Johnson highlighted the success of EZBC, Franklin Templeton’s spot Bitcoin ETF. This fund has amassed $420 million in assets under management within five months.

Furthermore, she pointed out that the collective assets under management across all spot Bitcoin ETFs have grown to approximately $58 billion. This rapid growth highlights the increasing interest in Bitcoin ETFs, particularly among larger institutions.

Read more: What Is a Bitcoin ETF?

Despite the promising growth, Johnson acknowledged that many institutions are still cautious. They prefer to observe early adopters before making significant investments.

“So I think that’s the next wave on the Bitcoin side. And, Ethereum, people are waiting for each [ETF], and I think that’s progressing through the [US Securities and Exchange Commission] SEC. So I think that will be the next step,” she said.

Recent data from SoSo Value supports Johnson’s optimism, revealing that spot Bitcoin ETFs in the US have recorded cumulative total net inflows of $15.34 billion since their inception. Moreover, a recent report from CoinShares highlights that digital asset investment products have experienced inflows for the fourth consecutive week. These inflows total $185 million, further corroborating the growing interest.

Adding to the positive sentiment, Matteo Greco, a Research Analyst at Fineqia, commented on the SEC’s recent approval of a spot-based Ethereum (ETH) ETF. He highlighted this milestone as a significant bridge between the digital asset space and traditional finance investors.

Greco anticipates increased interest in major altcoins following the launch of ETH spot ETFs. He expects that once these ETFs begin trading, issuers might consider applications for other highly capitalized altcoins, further boosting the entire ecosystem.

Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?

“The approval of financial instruments directly linked to digital assets now opens up new possibilities, allowing also to diversify digital assets exposure between the direct holding of the asset or investments in businesses that are actively working in the digital assets space,” he told BeInCrypto.