Franklin Templeton’s Bitcoin ETF Application Strengthens BTC Price Bull Case

LUCKNOW ( — Following Franklin Templeton’s filing for a spot Bitcoin Exchange-Traded Fund (ETF) with the US Securities and Exchange Commission (SEC), Bitcoin’s price initially surged. However, this enthusiasm quickly faded, a trend often seen with ETF announcements.

BTC daily price chart. Source: TradingView
BTC/USD daily price chart. Source: TradingView

Bitcoin ETF Applications in the Past

In a broader context, a legal victory for the Grayscale Bitcoin Trust against the SEC in August opened the door for institutions like BlackRock and Fidelity Investments to explore Bitcoin ETFs. This briefly drove Bitcoin’s price above $31,000, but approval delays for BlackRock and Fidelity on Sep. 2 dampened the momentum.

Franklin Templeton, a massive $1.5 trillion asset manager, entered the ETF race with the “Franklin Bitcoin ETF.” This news boosted Bitcoin’s price to $26,500, driven by social media buzz.

However, market overreactions are common in crypto, leading to corrections as emotional responses subside.

Hot Inflation Print Fails to Stop Bitcoin Bulls

Bitcoin’s recent price surge can also be attributed to its resilience amid higher-than-expected inflation. The August Consumer Price Index (CPI) report showed a 3.7% increase, with core CPI at 4.3%. Investors believe delayed interest rate hikes benefit assets like Bitcoin.

Institutional interest remains strong, with Grayscale’s legal win prompting institutions to apply for BTC spot ETFs. The decrease in Bitcoin held on exchanges suggests growing investor confidence in its long-term value.

While Bitcoin shows short-term bullish momentum, caution prevails in the market, as the Bitcoin Fear and Greed Index indicates.

Franklin Templeton’s ETF application’s fate rests with the SEC, with a rising probability of approval in the coming years.

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