Ordinals Are Pushing Bitcoin Innovation – Asset Manager

Franklin Templeton, one of the world's largest asset management firms, has acknowledged the potential of Ordinals - Bitcoin-based non-fungible tokens (NFTs).The asset manager recognized the Ordinals protocol as the primary driving force behind the surge in innovation within the Bitcoin ecosystem.

The Rise of Bitcoin Ordinals pic.twitter.com/nKLwwlMM4d

- Franklin Templeton Digital Assets (@FTI_DA) April 3, 2024

Notably, the Ordinals allow the creation and transfer of unique digital artifacts on the Bitcoin blockchain. In a recent investor note, the company highlighted the positive momentum" generated by Ordinals and other developments on the Bitcoin network.

Ordinals and Bitcoin Renaissance

According to Franklin Templeton Digital Assets, the introduction of Ordinals has sparked a renaissance in activity" on the Bitcoin network over the past year.

Ordinals have opened up new possibilities for creative expression, digital art, and collectibles, all while leveraging the security and decentralization of the Bitcoin network.

This development has attracted a diverse range of artists, collectors, and enthusiasts.This has fueled a new wave of experimentation and exploration within the Bitcoin community.

In addition to Ordinals, the company also pointed to other notable developments, such as new fungible token standards like BRC-20 and Runes.

This also includes Bitcoin-based layer-2 networks and decentralized finance (DeFi) primitives as contributors to the positive momentum in Bitcoin innovation.

The company revealed that Bitcoin Ordinals had seen a surge in trading volume over the past several months.This volume has surpassed even Ethereum - the leading blockchain for NFTs - in trading volume starting in December 2023.

Furthermore, the asset manager emphasized several Bitcoin Ordinals collections that have begun to dominate the NFT space regarding trading volume and market capitalization.

These collections include NodeMonkes, Runestone, Bitcoin Puppets, Ordinal Maxi Biz, and Bitmap.These NFTs have gathered significant attention and demand from collectors, driving their popularity and value.

Risks, Considerations, and Other Investment Opportunities

Franklin Templeton also cautioned its investors about the risks associated with these assets.The note emphasized that Ordinals, like other digital assets, may lose value and are not insured by the Federal Deposit Insurance Corporation (FDIC).

The asset manager reminded its investors that all investments, including digital assets, involve risks, including capital loss.It highlighted the immature and rapidly developing nature of digital asset technology and its vulnerabilities as potential sources of risk.

The digital assets' regulatory landscape remains uncertain, with potential regulation changes posing further challenges. The asset manager has been actively exploring diverse aspects of the cryptocurrency space to introduce its investors to emerging opportunities.

On March 14, the company ventured into meme coins, publishing an investor note that delved into the exciting world of these cryptocurrency tokens. While acknowledging the potential for meme coins to generate quick profits, Franklin Templeton cautioned that they possess no inherent value."

Franklin Templeton's foray into cryptocurrencies extends beyond meme coins. Earlier this year, the firm joined the ranks of issuers that launched a spot Bitcoin ETF in the United States.

They took action to capitalize on the growing demand for regulated exposure to the world's largest cryptocurrency, Bitcoin. Moreover, the investment giant has set its sights on the growing Ether market.

On February 12, Franklin Templeton submitted an S-1 filing with the U.S. Securities and Exchange Commission. This filling signals the Assets manager's intent to participate in the race for a spot in Ether ETF in the United States.

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