Franklin Templeton’s digital assets division, known as Franklin Templeton Digital Assets, recently released a note to its investors introducing Bitcoin-based nonfungible tokens (NFTs). The division attributed the positive momentum in Bitcoin’s innovation to the Bitcoin Ordinals protocol. According to the asset manager, there has been a significant increase in Bitcoin activity over the past year due to Ordinals.
In addition to Ordinals, Franklin Templeton also acknowledged the contribution of new fungible token standards like BRC-20 and Runes, Bitcoin-based layer-2 networks, and Bitcoin decentralized finance (DeFi) primitives in driving Bitcoin innovation.
The asset manager further highlighted the accelerating activities within the Bitcoin NFT space. Franklin Templeton emphasized the growing dominance of Bitcoin within the entire NFT ecosystem. In fact, several Bitcoin Ordinals collections such as NodeMonkes, Runestone, Bitcoin Puppets, Ordinal Maxi Biz, and Bitmap were identified as “dominating” the NFT space in terms of trading volume and market capitalization.
Despite its optimism about Ordinals, Franklin Templeton cautioned investors in the note about the potential depreciation of these assets and the absence of a bank guarantee. The asset manager also clarified that the Ordinals assets are not insured by the Federal Deposit Insurance Corporation.
Furthermore, Franklin Templeton reminded its investors that all investments carry risks, including the loss of capital. The company acknowledged the risks associated with digital assets due to their “immature” and rapidly evolving technology, as well as their vulnerabilities.
This is not the first time Franklin Templeton has introduced its investors to various niches within the crypto space. In a recent investor note, the firm discussed the potential of memecoins to generate quick profits but also highlighted that they lack inherent value.
Moreover, Franklin Templeton was among the exchange-traded fund (ETF) issuers that launched a spot Bitcoin ETF in the United States earlier this year. The company has also shown interest in a spot Ether (ETH) ETF, as evidenced by its submission of an S-1 filing with the U.S. Securities and Exchange Commission on February 12.
In conclusion, Franklin Templeton Digital Assets is actively exploring different aspects of the crypto market and providing its investors with insights and opportunities in these emerging sectors.