Franklin Templeton Eyes Broad Crypto Expansion Beyond Bitcoin, Foresees More ETP Filings
Franklin Templeton’s Head of Digital Assets, Sandy Kaul, foresees an increase in filings following the recent approval of 11 new spot bitcoin exchange-traded funds. Kaul highlighted that the firm, managing $1.5 trillion in assets, recognizes the “potential of this whole crypto domain.”
Franklin Templeton Sets Sights on Expanding Crypto Horizons
On social media this past week, the investment management giant Franklin Templeton discussed ethereum (ETH) and solana (SOL) in a series of tweets about crypto and blockchain technology. The company just launched its spot bitcoin exchange-traded fund (ETF) and presently the fund commands 1,160 BTC worth around $47 million. In an interview with Bloomberg’s Kailey Leinz and Sonali Basak, the asset manager’s digital assets sector chief Sandy Kaul said the firm expects more filings to come.
“We see the potential of this whole crypto domain,” Kaul said. “So we will continue to evolve our product range and continue to offer our investors more opportunities to access this innovation and capture the beta of what we call this new protocol economy.” When queried about Franklin Templeton’s inclination towards ethereum (ETH), Kaul did not specify. However, she indicated that the public should expect additional exchange-traded product (ETP) filings from the asset management company. “You can anticipate that you will see more filings from us at some point,” she said.
“There are many coins with large market caps and why just stop with just bitcoin?” Kaul remarked. “I mean there are other opportunities and they are different opportunities. Ethereum is another asset in the crypto domain that offers a slightly different value proposition than bitcoin because it’s more of an app development platform and it fosters its own ecosystem. So that’s a slightly different investment proposition than bitcoin.” The Franklin Templeton executive added:
In all portfolio theory, it is better to have multiple assets in a portfolio rather than a single-asset portfolio. So it would not be reasonable to expect that bitcoin is going to be the only asset that moves into vehicles that make it easier for investors to put money into this space.
The Bloomberg show hosts also inquired with Kaul regarding BTC’s categorization, likening it to a commodity similar to gold. “I think there’s some truth to that because there’s this digital scarcity programmed into Bitcoin where you only get 21 million coins ever going to be created. And you can track every one of those coins through a decentralized process, so no one can control that supply. So I think there’s some good analogies that can be drawn to the gold situation.”
Kaul wrapped up the discussion by touching on BTC’s volatility, observing that the digital asset’s price swings bear a resemblance to those in the commodities market. “I think that the volatility that you see in bitcoin markets is often similar to the volatility that you will see in commodity markets,” Kaul remarked. Responsible trading firms like Franklin Templeton know how to handle that type of volatility, and we get into these markets every day on behalf of our investors. I think that this is a great opportunity for them and there’s a lot they can relate to with this investment, even if they don’t understand bitcoin.”
What do you think about the interview with Franklin Templeton’s digital assets lead Sandy Kaul and her comments? Share your thoughts and opinions about this subject in the comments section below.