Bitcoin price rallies on Franklin Templeton ETF filing

The recent excitement surrounding Franklin Templeton’s registration for a Spot Exchange Trust Fund (ETF) has begun to fade, mirroring previous experiences in the bitcoin industry.

According to Santiment, a market intelligence platform, the initial fear of missing out (FOMO) among investors is similar to what we’ve observed in response to past ETF filings.

Santiment recently warned crypto enthusiasts on X (previously Twitter) that, while ETFs offer long-term promise for the crypto industry, it’s critical not to overreact when news of ETF registrations gets popular.

Franklin Templeton entered the race for the first Bitcoin ETF approval on September 12 by filing with the US Securities and Exchange Commission (SEC).

This action ties them with other financial titans such as BlackRock and Fidelity in their pursuit of a Bitcoin ETF.

Franklin Templeton’s filing terms are very similar to those of prominent participants in traditional finance. Notable aspects include the requirement for Coinbase (COIN) to serve as the ETF’s Bitcoin custodian. Furthermore, trading in the ETF is scheduled to take place on the Cboe BZX Exchange, using the CME’s CF Bitcoin Reference Rate.

The crypto market initially reacted favorably to Franklin Templeton’s filing, with Bitcoin’s price rising. After reaching a low of $24,920 in the local market, Bitcoin recovered to $26,529, earning a spectacular 6.45% profit in less than 24 hours—an astounding divergence from recent market trends.

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