Coming next Bitcoin ETF wave

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

Her insights point to the growing potential of Bitcoin ETFs and the tokenization of 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 Place Bitcoin ETF. This fund has accumulated $420 million in assets under management in five months.

In addition, she noted that the collective assets under management of Bitcoin ETFs everywhere have grown to about $58 billion. This growth reflects interest in Bitcoin ETFs, especially among large institutions.

Read more: What is a Bitcoin ETF?

Despite promising progress, Johnson acknowledged that many institutions are still cautious. They prefer to look at early adopters before investing heavily.

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

The latest data from SoSo Value supports Johnson's optimism, showing that Bitcoin ETFs in the United States have recorded a total net inflow of $15.34 billion since its inception. Moreover, according to a recent report from CoinShares, digital asset investment products experienced a fourth consecutive week of inflows. These revenues totaled $185 million, further confirming the growing demand.

Adding to the positive sentiment, Matteo Greco, research analyst at Phoenicia, commented on the SEC's recent approval of a spot-based Ethereum (ETH) ETF. He highlighted this chapter as a great bridge between the digital asset space and traditional financial investors.

Greco expects interest in major altcoins to increase following the launch of the ETH spot ETF. After these ETFs begin trading, issuers expect to grow the ecosystem by considering applications for other highly capitalized altcoins.

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

“The approval of financial instruments directly linked to digital assets now opens up new opportunities, allowing for direct ownership of the asset or increased exposure of digital assets among businesses actively working in the digital assets space,” he told BeinCrypto.