- The crowd hype surrounding Franklin Templeton’s ETF filing has died.
- According to Santiment, the FOMO is not different from that of previous ETF filings.
- Santiment warned users to beware of overreactions following ETF filing announcements.
The crowd hype surrounding the recent Spot Exchange Trust Fund (ETF) filing by Franklin Templeton, a global investment firm, has died. According to Santiment, the market intelligence platform with social and on-chain metrics, the fading Fear Of Missing Out (FOMO) is not different from that experienced with previous ETF filings.
In a recent post on X (formerly Twitter), Santiment noted that ETFs should benefit the crypto market in the long term. However, the market analysis platform warned users to beware of overreactions whenever news of ETF filings goes mainstream.
Franklin Templeton filed for a spot ETF with the U.S. Securities and Exchange Commission (SEC) on Tuesday, September 12. The investment firm joined the likes of BlackRock and Fidelity in seeking the first Bitcoin ETF approval.
According to reports, the terms of Franklin Templeton’s filing are similar to those of the other recognized practitioners in traditional finance. Details of the filing include the condition that Coinbase (COIN) will act as the custodian of bitcoins held by the fund. The filing conditions also include that the ETF trading will be carried out on the Cboe BZX Exchange while using the CME’s CF Bitcoin Reference Rate.
The crypto market reacted with an upward price surge following the filing by Franklin Templeton. Bitcoin bounced off a local low of $24,920 and rallied to $26,529. This price rally translated to a 6.45% profit in less than 24 hours, representing an outlier considering the recent market behavior.
Bitcoin’s price pulled back in consolidation after the surge, representing perhaps a fading interest in the hype generated by the recently announced ETF filing. The bulls appeared to withdraw from the market, plunging the Bitcoin price back into the middle of an existing range between $25,346 and $26,431.
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