Key Points
- Franklin Templeton CEO Jenny Johnson asserts we are in the early stages of the Bitcoin investment cycle.
- Johnson believes that all exchange-traded funds and mutual funds will eventually exist on the blockchain.
Jenny Johnson, the CEO of Franklin Templeton, is of the opinion that the Bitcoin investment cycle is still in its early stages. She suggests that substantial institutional funds have not yet been fully invested in this asset class.
According to Johnson, the current phase is merely the first wave of early adopters. She anticipates that larger institutions will form the next wave. This prediction is rooted in her belief that institutional interest in digital assets and their underlying technologies will continue to grow as investors and fund managers become more accustomed to them.
Blockchain Innovation and Cost Reduction
Johnson, a vocal advocate for blockchain innovation, has previously stated her belief that all exchange-traded and mutual funds will eventually exist on the blockchain. She attributes her endorsement of blockchain technologies and digital assets to the significantly lower data processing costs and novel use cases they offer.
Johnson’s firm conducted a test comparing traditional data processing systems with blockchain information systems. The team was amazed by the drastic cost reduction achieved by using blockchain systems for data transmission.
NFTs and Tokenization
Johnson also recognizes the potential of digital assets for unique applications. She mentions the example of Rihanna utilizing nonfungible tokens (NFTs) to tokenize royalty rights to her song and transfer these rights to the NFT holders.
Johnson describes tokenization as “securitization on steroids,” acknowledging the ability of digital assets to unlock previously inaccessible liquidity and reveal value hidden within hard assets and digital property rights. She also notes that such technologies can increase access to non-financial assets, such as collectibles, memberships to organizations via NFTs and other tokens, and subscriptions—potentially giving rise to new asset classes and markets.
