Franklin Templeton Expands Crypto Portfolio and Anticipates More ETP Filings

Franklin Templeton Recognizes Crypto Potential

Franklin Templeton, a leading investment management giant with $1.5 trillion in assets under management, is actively exploring opportunities in the cryptocurrency market. After the recent approval of 11 new spot bitcoin exchange-traded funds (ETFs), Sandy Kaul, the Head of Digital Assets at Franklin Templeton, predicts a surge in filings for similar products. Kaul emphasized the firm's belief in the vast potential of the crypto domain.

Expanding Crypto Horizons

In a series of tweets discussing blockchain technology and cryptocurrencies, Franklin Templeton mentioned ethereum (ETH) and solana (SOL). The company has already launched its spot bitcoin ETF, which currently holds 1,160 BTC valued at approximately $47 million. In an interview with Bloomberg, Sandy Kaul stated that Franklin Templeton expects to introduce more exchange-traded product (ETP) filings in the future.

Kaul expressed the firm's intention to diversify its product range and provide investors with increased access to the innovative opportunities presented by the new protocol economy. While Kaul did not divulge the specifics of Franklin Templeton's interest in ethereum (ETH), she confirmed that additional ETP filings should be anticipated from the company.

Exploring Beyond Bitcoin

Highlighting the wide range of cryptocurrencies available, Kaul stated that Franklin Templeton is not limited to bitcoin alone. With numerous coins boasting significant market capitalization, the firm aims to explore different opportunities within the crypto domain. Kaul emphasized that ethereum, for example, offers a unique value proposition as an app development platform and ecosystem, setting it apart from bitcoin.

Recognizing the benefits of diversification, Kaul explained that it is prudent to include multiple assets in a portfolio rather than relying solely on a single asset. Therefore, Franklin Templeton envisions incorporating various cryptocurrencies into vehicles that facilitate investor participation in this space.

Bitcoin's Resemblance to Gold

When asked about bitcoin's categorization, Kaul drew parallels to commodities such as gold. She emphasized that bitcoin's digital scarcity, with only 21 million coins ever to be created, and its decentralized tracking process resemble the characteristics of gold. This comparison underscores the asset's uniqueness and potential as a store of value.

Volatility and Trading Expertise

Addressing bitcoin's volatility, Kaul noted similarities to price fluctuations in commodity markets. She highlighted that responsible trading firms like Franklin Templeton are well-versed in managing such volatility and actively engage in these markets on behalf of their investors. Kaul believes that despite the complexity of bitcoin, it presents an excellent investment opportunity even for those who may not fully comprehend it.

Share your thoughts on the interview with Sandy Kaul, Franklin Templeton's Head of Digital Assets, and her insights into the crypto market in the comments section below.


How To

The History of Gold as an Asset

From the ancient days to the early 20th Century, gold was a common currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. In addition, because of its value, it was traded internationally. There were different measures and weights for gold, as there was no standard to measure it. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.

In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This led to a decline in demand for foreign currencies, which caused their price to increase. The price of gold dropped because the United States began to mint large quantities of gold coins. The U.S. government was unable to pay its debts due to too much money being in circulation. To do this, they decided that some of their excess gold would be sold back to Europe.

Many European countries didn't trust the U.S. dollars and started to accept gold for payment. However, many European nations stopped using gold to pay after World War I and started using paper currency instead. The gold price has gone up significantly in the years since. Although the price of gold fluctuates today, it remains one of your most safe investments.


By: Jamie Redman
Title: Franklin Templeton Expands Crypto Portfolio and Anticipates More ETP Filings
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Published Date: Fri, 19 Jan 2024 19:00:21 +0000

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