Franklin Templeton CEO Jenny Johnson said her firm decided to launch a spot Bitcoin ETF because there is a lot of “escalating demand” for the flagship cryptocurrency.
Johnson made the statement during a CNBC interview on Jan. 19, where she countered previously held notions that she was not supportive of Bitcoin or cryptocurrency as false. She said:
“Bitcoin is just one of the suite of what we think are opportunities here.”
The comments are particularly noteworthy, considering Franklin Templeton manages roughly $1.4 trillion in assets and has been around for 76 years. The statement also highlights the growing acceptance of Bitcoin as a viable investment option among mainstream traditional financial firms.
Bitcoin’s growing integration
Johnson said the launch of Franklin Templeton’s Bitcoin ETF is a strategic response to the increased use of Bitcoin in transactions and its integration into the broader financial system.
She added that the technology underpinning Bitcoin and other cryptocurrencies has created “diverse and novel investment opportunities” that will continue to evolve.
Reflecting on Bitcoin’s role in global finance, Johnson echoed BlackRock CEO Larry Fink’s sentiments regarding Bitcoin as a hedge against oppressive governments. She shared insights into how Bitcoin serves as a safety net for individuals in unstable regimes.
Johnson gave examples of people who turned to Bitcoin after the government confiscated their assets and people who held Bitcoin to protect themselves against sudden and violent inflation.
“There is a fear component to it that is considered almost an insurance or a safety component.”
Committed to adoption
Johnson said that such use cases are the foundation of what makes Bitcoin valuable to humanity as a tool to protect freedom. However, the industry is still in its nascency, and holding Bitcoin is very complicated for the average person who is not tech-savvy.
Johnson said the Bitcoin ETFs allow people to gain exposure to Bitcoin without having to deal with the complicated nature of the technology. She added that ETFs make Bitcoin more accessible, which ultimately is a good thing for adoption.
Johnson said that Franklin Templeton has been bullish on the crypto industry for a number of years and first delved into tokenizing assets on a public blockchain in 2021. She added that the firm has been at the forefront of adoption and remains committed to that approach.
She said the firm will continue to create investment products that its customers want, whether its in the form of crypto ETF or mutual funds. However, she did not elaborate further on the company’s future plans.
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