Major Asset Manager Franklin Templeton Invests in BTC
Franklin Templeton, the company overseeing $1.5 trillion in assets, has decided to invest heavily in Bitcoin and blockchain startups.
Sandy Kaul, their Senior Vice President, revealed the company's investment intent. She anticipates a steady increase in institutional investors within the crypto industry. In her perspective, they are inclined to allocate their funds into Bitcoin, undeterred by the artificially triggered downtrend in the cryptocurrency market. Sandy emphasized the cyclic nature of the crypto market, where since 2011 bull cycles have transitioned into bear ones every few years. However, the market consistently trends upwards.
Kaul believes that the last ‘crypto winter' was a period where institutional investors were merely biding their time, awaiting favorable conditions to enter the market. She considers large investment companies and hedge funds as instrumental for the crypto industry. They can lay a robust foundation with their investments and champion the digital asset market, thus integrating cryptocurrencies into the financial systems of various nations.
What led Franklin Templeton to consider investing in cryptocurrencies?
Responding to inquiries on why a prominent investment company like Franklin Templeton decided to step into the digital asset market, Kaul shared the following. Certain experts within the company were so captivated by the technology underpinning Bitcoin that they decided to invest in blockchain startups. This move is expected to enhance the operational efficiency of their business and, simultaneously, spread their risks.
Sandy Kaul divulged information regarding the investment strategy that Franklin Templeton has adopted for the digital asset market. Initially, the company carried out a thorough analysis of various coins and incorporated the most promising crypto assets into their investment portfolio. Going forward, the company plans to direct funds into various crypto startups via a venture subsidiary set up in 2021. Additionally, Sandy disclosed that Franklin Templeton specialists even launched several blockchain nodes to gain practical insight into the workings and expansion of the Bitcoin network.
Kaul also highlighted that Franklin Templeton's interest in cryptocurrencies isn't confined to Bitcoin alone. She spoke with enthusiasm about the tremendous potential that blockchain technologies offer, asserting her belief that these opportunities will be more closely scrutinized by investors in the future.
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.
She also pointed out that many institutional investors are inclined to enter the market when prices are low, and the industry isn't the focus of public attention.
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,
Sandy stated.
Closing insights
Franklin Templeton has now joined the cohort of renowned hedge funds such as Grayscale Investments, Ark Invest, and Pantera Capital, and plans to continue investing in Bitcoin and crypto startups.
What's intriguing is that Franklin Templeton, alongside its investment activities, is fostering global crypto mass adoption by educating anyone interested. This approach contributes to the growing number of retail investors eager to include digital assets in their portfolios.
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