Jenny Johnson, CEO of Franklin Templeton, believes that the Bitcoin (BTC) investment cycle is still in its early stages and that large institutional investors have yet to fully invest in this asset class.
In a recent interview with CNBC, Johnson stated that the current wave of early adopters is just the beginning, and the next wave will involve much larger institutions. She emphasized that as more hesitant investors and fund managers become comfortable with handling digital assets and their technology, institutional interest will continue to grow.
Johnson, a strong supporter of blockchain innovation, previously expressed her belief that all exchange-traded funds and mutual funds will eventually transition to blockchain technology. She highlighted the significantly lower data processing costs and innovative applications as the main reasons for her support of blockchain and digital assets.
During an experiment conducted by her firm, Johnson’s team was surprised by the substantial cost reduction achieved by using blockchain systems for data transmission compared to traditional systems. She also pointed out unique use cases for digital assets, such as Rihanna’s use of nonfungible tokens (NFTs) to tokenize royalty rights for her song “B-tch Better Have My Money.”
Johnson referred to tokenization as “securitization done on steroids,” emphasizing the ability of digital assets to create liquidity and unlock value from hard assets and digital property rights that were previously inaccessible. These technologies can also enhance access to non-financial assets like collectibles, memberships, and subscriptions through NFTs, potentially establishing new asset classes and markets.
The CEO’s forward-thinking approach highlights the transformative potential of blockchain technologies and digital assets in creating new opportunities and markets for investors and businesses alike.