Jenny Johnson, President and CEO of Franklin Templeton, joined CNBC’s ‘Squawk Box’ to discuss the company’s spot Bitcoin exchange-traded fund (ETF) offering in the United States. In this interview, Johnson shared why she is investing in Bitcoin.
Why CEO Franklin Templeton Became a Bitcoin Believer
As she said in the interview, the CEO reportedly said, “Bitcoin is the biggest disruptor of one of the biggest disruptions in financial services,” which led many to believe that she does not support or believe in cryptocurrency assets. .
Contrary to this belief, she points out that the launch of the Franklin Bitcoin ETF (EZBC) demonstrates the asset manager’s faith in BTC and blockchain technology.
Johnson cited the security offered by Bitcoin as one of the reasons that made him a “believer.” Holding and managing the private keys, which she mentions at one point, gives her assets the label “insurance or security component.”
As she explains, this component makes cryptocurrency investors trust Bitcoin more because it has a “fear component” tied to traditional assets.
One of the things that made me believe was when I went around the world and said, ‘I keep 50% of my savings in Bitcoin. I’ve talked to people who say, ‘If I save wrongly in my country, they can take my assets.’ ‘It was confiscated.’ I once talked to someone in Israel. ‘My parents and all their assets were confiscated.’ It stores a portion of your Bitcoin. So there is an element of fear that is almost seen as an insurance or safety factor.
The CEO also mentioned the importance of Bitcoin in “catalyzing the next real opportunity in this blockchain world,” which is another reason she believes in this asset.
Trust in blockchain technology
Regarding the market demand for a spot Bitcoin ETF to be approved by the U.S. Securities and Exchange Commission (SEC), the CEO believes there are a variety of reasons, including Bitcoin’s important role “from a blockchain perspective.” Ability to pay.
Johnson also explained that blockchain technology “is going to open up a lot of really interesting technology investment opportunities,” with Bitcoin being “one of the opportunities that fits in here.” The CEO also recalled that the asset manager had previously used and trusted blockchain technology.
We actually launched and tokenized a money market fund. We are actually the first mutual fund and the first traditional asset manager to launch a 40-act fund on a public blockchain, a great blockchain.
Finally, when asked what might entice traditional investors to invest in ETFs, she explains that there is a market and use case for both. But while holding a key may be ideal for many people, it can also be complicated to figure out.
ETFs may be a better fit for some investors who want to diversify their portfolio while still being “open and accessible through an ETF and simply through an account.”
Bitcoin is trading at $40,990.5 on the hourly chart. Source: BTCUSDT on TradingView.com
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