thecoinrepublic.com
SBI Holdings has partnered with Franklin Templeton, an investment management firm, to form an investment company that will be involved in Bitcoin ETFs. This partnership is a result of SBI Holdings’ plan to increase its influence in the asset market. The collaboration is significant for both firms as they capitalize on the increasing demand for digital currencies.
The investment management company is set to start its operations this year with SBI Holdings having 51% control while Franklin Templeton has 49% control. This joint venture comes when the demand for crypto-related products is on the rise.
Bitcoin Market Response and Regulatory Developments
The initiative is backed by recent events in the United States where the Securities and Exchange Commission (SEC) has allowed the listing of Bitcoin and Ethereum spot ETFs.
These have created a path for Japan and other regulators to be lenient on the Bitcoin ETFs. In this regard, SBI Holdings and Franklin Templeton are preparing for the future growth of the investment market in Asia.
🚨 Breaking: #Ripple partner SBI Holdings & Franklin Templeton are teaming up to dive into the #Bitcoin ETF market! 🚀 They’re setting up a new investment management company, with SBI holding a 51% stake. Major step as Japan readies for easier Bitcoin ETF regulations. 🌏💰… pic.twitter.com/UKNdOcKqIT
— Collin Brown (@CollinBrownXRP) July 25, 2024
In the related market activities, Bitcoin seemed to have crashed, losing 3.63% of its value within the last 24 hours. It was still trading at $63,970 at the time of this writing. However, the trading volume has risen by 17% which shows that there is still interest from investors in the market
Franklin Templeton’s Strategic Focus Areas
Additionally Franklin Templeton has disclosed its interests within the Bitcoin and Ethereum ecosystems after the latest approval of cryptocurrency ETFs. Some of these technologies that BlackRock is closely watching are Bitcoin layer-2 solutions and new features of the Ethereum blockchain.
Outside of ETH we remain enthusiastic about the slew of advancements in the Bitcoin ecosystem following the BTC ETF, we continue to monitor the following areas:
— Franklin Templeton Digital Assets (@FTI_DA) July 23, 2024
· Bitcoin Layer 2’s
· Restaking/Native Yield Primitives
· Ordinals
· DeFi/Runes
· OP Cat
There is much focus on ordinals and restaking/native yield primitives within the Bitcoin ecosystem. Ordinals enable the encoding of numeric data on specific units of Bitcoin giving rise to non-fungible tokens.
Concurrently, the company continues to assess the impact of the OP_CAT proposal, a certain scripting language that can make Bitcoin more functional and enable smooth transactions and complex smart contracts.
Innovations in Ethereum Monitored by Franklin Templeton
Franklin Templeton is also tracking the progress of the Ethereum ecosystem. The investment management company is positive about the possibility of parallel execution and the availability of alternative data solutions that can improve the Ethereum network.
Investing in ETH represents ownership in the Ethereum blockchain, the largest decentralized ecosystem. We are seeing continued innovation across the modular stack. Areas we are excited about include:
— Franklin Templeton Digital Assets (@FTI_DA) July 23, 2024
· Parallel Execution
· Restaking Primitives
· Alternative DA
· Blob utilization…
The firm is focused on the events following EIP 4844 and the potential of using blobs to cut the costs of transactions. These areas are crucial to the advancement of the blockchain industry and Franklin Templeton plans to leverage them.
SBI Holdings partnership is a major shift in the way financial institutions are preparing for the digital currency market. The development is evidence of the gradual transformation of investors and regulators toward digital assets.