Franklin Templeton's digital assets division released information to investors about Bitcoin-based nonfungible tokens (NFTs). According to Franklin Templeton Digital Assets, the Bitcoin Ordinals protocol played a significant role in sparking innovation within the Bitcoin ecosystem.

The asset manager highlighted a surge in activity around Bitcoin in the past year due to the Ordinals protocol. They also mentioned the importance of new fungible token standards, Bitcoin-based layer-2 networks, and Bitcoin decentralized finance (DeFi) primitives in fostering innovation.

Franklin Templeton noted the increasing prominence of Bitcoin in the NFT space, with Bitcoin Ordinals collections seeing growth in trading volume and market capitalization. This acceleration has led to Bitcoin's dominance within the NFT ecosystem.

While expressing optimism about Ordinals, the asset manager cautioned investors about the potential risks associated with these assets, emphasizing that they are not insured by the FDIC and may lose value.

Franklin Templeton continues to introduce its investors to various segments of the cryptocurrency market. This includes delving into memecoins and launching a spot Bitcoin ETF in the U.S. The company is also pursuing a spot Ether ETF through an S-1 filing with the SEC.