Taking a firm step toward crypto adoption, Franklin Templeton submitted an application to the United States Securities and Exchange Commission (SEC) on September 12, to launch a Bitcoin (BTC) spot exchange traded fund (ETF). It seems to be the collective stance of major financial players lately, with several prominent institutions, including WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco, having filed similar applications. However, the SEC remained reluctant, delaying its decision on these applications at the end of August, adding an extra layer of suspense to Franklin Templeton’s endeavor.
In contrast to future ETFs, the fund proposed by Franklin Templeton is structured as a trust, with Coinbase providing custody for the BTC, and Bank of New York Melon handling cash custody and administration. This brings us to the key question that all crypto enthusiasts inevitably face- will even the best-structured and managed funds be able to overcome the inherent risk and volatility of the crypto markets?
Looking beyond the American horizon, major advancements in crypto adoption were also seen in Asia, with India, Nigeria, and Thailand topping Chainalysis’ 2023 Global Crypto adoption index. Even though the worldwide grassroots cryptocurrency is in decline following the FTX implosion of 2022, lower-middle-income countries as classified by the World Bank showed the most resiliency. Apparently, despite the high risk involved, these countries seem to see more opportunities than threats in the crypto markets, continuing to fuel their growing industries and serving over 40% of the global population.
Nonetheless, Chainalysis’ report also suggested the possibility of a “bottom up and top down” adoption of cryptocurrencies. This means that cryptos would cater to the needs of users from both high wealth and developing nations, possibly helping improve the wealth gap. But one can’t help but wonder if such a perfect balance between the high and low wealth extremes can be achieved without exacerbating economic disparities.
Indeed, the crypto market continues to evolve at a lightning speed, representing both promise and peril. As Franklin Templeton and lower-middle-income countries continue to brave the tumultuous crypto waves, skeptics might still remain dubious. Still, enthusiasts know that the path toward the future of finance is paved with risks, and they are prepared to navigate it. No one can predict with certainty where the tide will turn, but waiting on the shores for the perfect moment might mean missing the boat altogether.
Source: Cointelegraph
