The CEO of Franklin Templeton, a $1.33 trillion asset manager, thinks bitcoin is “obviously” in demand and that a spot bitcoin exchange-traded fund (ETF) is “a better way” to have access to the cryptocurrency.

The executive went on to say, “It’s going to unlock nontraditional, noncorrelated types of asset classes that are going to be interesting for our clients.”

Franklin Templeton Sees Bitcoin Demand

Jenny Johnson, CEO of Franklin Templeton Investments, spoke with Fortune last week about bitcoin and bitcoin exchange-traded funds (ETFs). As of Oct. 31, the firm had $1.33 trillion in assets under management.

“I believe it is critical to distinguish between bitcoin and blockchain. I believe there is a Bitcoin market. It has its use case, which is why you see these ETFs,” she explained. Franklin Templeton is one of the asset managers that has registered with the Securities and Exchange Commission (SEC) to launch a bitcoin exchange-traded fund (ETF).

According to the CEO:

It will open up nontraditional, noncorrelated asset classes that will be of interest to our clients. We also believe that it will improve the efficiency of the items that you currently have.

“ETFs trade all day but price only twice a day.” Assume you create a pooled vehicle on the blockchain. When you transact, the smart contract may inform you what the underlying value of those securities is. “It’s just a much more efficient way to operate,” Johnson explained.

The executive also provided an overview of the asset manager’s different crypto-related projects. “We created a tokenized money-market fund at Franklin Templeton.” On top of that, we designed a shareholder recording system.

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We are a node validator, and we provide advice on various portfolios. We have both passive and active investments. “While these are all in their early stages, they show that we’re big believers in this space,” she explained.

She stated, “I don’t know if the SEC will approve a spot bitcoin ETF.” That is in the hands of regulators, who are attempting to determine the appropriate way. Their job is to safeguard consumers, and I believe they will do so in due time.”

When asked about customer interest in a bitcoin spot ETF and prospective fund inflows upon SEC clearance,

she emphasized:

I feel there is a demand for Bitcoin, and I believe a spot ETF is a better method to have access to it. It should be a better way to accomplish it, as long as they trade and the bid-ask spread is narrow. It is a far more convenient method for everyone interested in investing in Bitcoin.

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