Franklin Templeton, one of the world’s largest asset managers with over $1.5 trillion in assets under management, plans to invest heavily in Bitcoin as well as its underlying technology.
This strategy was revealed by Sandy Kaul, the Senior Vice President of Franklin Templeton’s burgeoning crypto business, during a Sunday interview with Scott Melker, host of the Wolf Of All Streets podcast.
Discussing how Franklin Templeton entered the digital asset space, Kaul explained that the company was intrigued by the technology behind Bitcoin and had decided to experiment on blockchain to bring operational efficiency and cost savings for its businesses.
As such, the company commenced research on individual coins, created multi-coin portfolios, and even invested in various crypto firms through a dedicated venture capital fund created in 2021. Furthermore, she disclosed that Franklin Templeton operates its node operations to gain a comprehensive understanding of the Bitcoin network and its growth.
Kaul also emphasized that Franklin Templeton’s interest in crypto extends beyond Bitcoin. She highlighted the vast opportunities presented by the cryptocurrency’s blockchain and expressed her belief in investors exploring emerging opportunities.
“I think one of the issues we have right now is that people fixate too much on just Bitcoin and oftentimes don’t think about the broader ecosystem….Bitcoin is a huge Innovation, and we think it’s going to have massive opportunities in the future,” said Kaul.
Kaul also predicted a continued surge in institutional investors dabbling with cryptocurrencies, particularly Bitcoin. She highlighted the cyclical nature of the crypto market, with waves of bull markets occurring every few years since 2011.
According to her, institutions prefer to enter the market when prices are low, and the sector is not in the spotlight. Thus, the current crypto winter was a period in which institutions strategically positioned themselves in the market, similar to the gradual adoption of alternative assets that took around 10 to 15 years. Furthermore, Kaul emphasized the importance of institutional involvement in creating a solid foundation for the market, which would play a crucial role in propelling cryptocurrencies to new heights following substantial price declines.
“I know they’re not worried about the price. They salivate at low prices…If you’ve seen Bitcoin go to $69,000 and you see it at $15,000, you know $69,000 can happen again.” She added.
That said, as Franklin Templeton commits to investing further in Bitcoin and the broader crypto ecosystem, the asset manager joins prominent hedge funds, such as Grayscale Investments, Ark Invest and Pantera Capital, that have already made substantial investments in the space.
Furthermore, with Franklin Templeton’s commitment to education and promotion alongside its investment activities, mainstream acceptance of digital assets in investment portfolios will likely accelerate.