Franklin Templeton CEO Predicts Bitcoin's Future and Advocates for Blockchain Innovation
Summary:
Franklin Templeton CEO, Jenny Johnson, conveyed her belief that Bitcoin (BTC) is still in its nascent investment phase with major institutional funding yet to enter this asset class. She emphasized the potential of blockchain technology in asset management, citing lower data processing costs and innovative applications. Johnson also highlighted novel uses of nonfungible tokens (NFTs), like in the music industry, and the creation of new asset classes as financial and non-financial assets become more accessible.
Jenny Johnson, the CEO of Franklin Templeton, has expressed her opinion that Bitcoin (BTC) is still early in its investment phase, and that substantial institutional funds are yet to make their way into this asset class. During a recent discussion with CNBC, she stated, "Currently, we're only witnessing the initial wave of early adopters. Bigger institutions represent the upcoming wave." She also pointed out that as investors and fund managers, previously skeptical about digital assets, become more au fait with these novel assets and their associated technologies, institutional curiosity shall inevitably surge. End-week flows into cryptocurrency funds as of May 31, 2024 were reported by CoinShares Digital Asset Fund Flows.
Johnson, the leader of a company that manages assets worth $1.6 trillion, is a vocal advocate for blockchain technology and has previously suggested that exchange-traded funds and mutual funds will eventually exist entirely on the blockchain. She argued that key reasons for her support of blockchain and digital assets include significantly reduced data handling expenses and potential new applications. She revealed that Franklin Templeton carried out a test comparing traditional data handling methods with blockchain-based systems. The reduction in cost achieved with the latter was quite astonishing, according to her.
Johnson also identified nonfungible tokens (NFTs) and their potential applications as noteworthy. She drew attention to Rihanna's tokenizing of the royalty rights to her song "B*tch Better Have My Money", enabling the transfer of those rights to NFT holders. Tokenization, she explained, is comparable to supercharged securitization, since digital assets provide the ability to make liquid what was previously illiquid, releasing value enclosed within tangible assets and digital proprietary rights.
Such digital technologies could broaden the accessibility to non-financial assets like collectibles, affiliations to various organizations via tokens, and subscriptions — potentially giving rise to entirely distinct asset classes and markets during the process. A magazine recently reported on a UK cannabis millionaire legally conducting 'deals on wheels' through cryptocurrency.
Published At
6/5/2024 8:39:22 PM
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