Bitcoin drives ‘positive momentum’ in innovation – Franklin Templeton
Asset manager Franklin Templeton's digital assets division has published a note to its investors on the short-term introduction of Bitcoin-based non-fungible tokens (NFTs).
According to Franklin Templeton Digital Assets, the Bitcoin Ordinals protocol has primarily led to positive progress in innovation in Bitcoin.
The asset manager said there was a “renaissance of activity” in Bitcoin last year due to Ordinals.
The asset manager cited new funnel token standards like BRC-20 and Runes, Bitcoin-based layer-2 networks and Bitcoin decentralized finance (DeFi) primitives as contributing to driving Bitcoin innovation.
The asset manager notes that activity in the Bitcoin NFT space is accelerating. Franklin Templeton points to Bitcoin's increasing dominance throughout the NFT ecosystem. The company wrote:
“Bitcoin Ordinals has seen an increase in trading volume over the past several months. This is reflected in its dominance in December 2023, when trading volume surpassed ETH.”
In addition, the asset manager highlighted several sets of Bitcoin Ordinals that have begun to “dominate” the NFT space in terms of trading volume and market capitalization. This includes NodeMonkes, Runestone, Bitcoin Puppets, Ordinal Maxi Biz and Bitmap.
While the asset manager seems optimistic about Ordinal, he highlighted in the note that these assets are likely to lose value and will not be bank guaranteed.
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Franklin Templeton also suggested that ordinary assets should not be insured by the Federal Deposit Insurance Corporation.
In addition, the asset manager reminded the investors that “all investments involve risks, including the loss of capital.” The company wrote that digital assets are vulnerable to risks due to “immature” and rapidly developing technologies and their complications.
Related: Ordinary Traders Get Bitcoin Back After Fat-Finger NFT Purchases
Franklin Templeton has been introducing its investors to several positions in the crypto space. On March 14th, the firm published an investor note on memecoins that went “completely rotten”.
The company acknowledges that memecoins have the potential to generate quick profits, but also state that they have “no intrinsic value.”
Franklin Templeton was one of the exchange-traded fund (ETF) issuers that launched a bitcoin ETF position in the United States earlier this year.
The firm also participated in the competition for the Space Ether (ETH) ETF. In the year On February 12, the company filed an S-1 with the US Securities and Exchange Commission.
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