Investing in Bitcoin is still in its infancy - Franklin Templeton

In an interview with CNBC, Jenny Johnson, CEO of Franklin Templeton, expressed confidence in the future of spot Bitcoin ETFs in the US, predicting a surge in demand as more institutional investors join the market.

Despite the recent slowdown in inflows into spot ETFs and the price of Bitcoin , Johnson leaves optimist.

Early success and subsequent delay

Bitcoin ETFs got off to a strong start with over $13 billion in inflows in the first three months of debut them on January 11. This influx pushed the price of Bitcoin to a high of $73,700 in March. However, inflows slowed in April and May, raising concerns about sustained interest.

Potential for institutional investment

Johnson emphasized that early investors were mostly non-professionals, with SEC filings showing that large investors and firms made up just 20% of assets in the Bitcoin ETF as of April. This suggests significant room for growth as more institutional investors may soon enter the market.

Franklin Templeton's strategy

Franklin Templeton manages a smaller spot Bitcoin ETF with 6,148 BTC (approximately $440 million), offering the lowest fee of 0.19%. The company plans to launch Ethereum ETFs with similarly low fees, which Johnson believes will attract more cost-conscious investors.

Bitwise's take on political influence

Bitwise, another firm running a significant Bitcoin ETF, also expects increased institutional demand. Their IT director Matt Hogan indicated that political events in Washington could further boost crypto market adoption, potentially leading to new highs.

Recent trends and future prospects

Bitcoin ETF recently marked a revival with $886 million in single-day inflows, their second best performance to date. This renewed interest underscores continued confidence in the cryptocurrency as a viable investment, supporting Johnson's positive outlook for the future of the Bitcoin ETF.