How Bitcoin won the heart of this financial giant

Franklin Templeton President and CEO Jenny Johnson joined CNBC's 'Squawk Box' to discuss the company's spot bitcoin exchange-traded fund (ETF) offering in the U.S. In this interview, Johnson shared the reasons for investing in bitcoin.

What made Franklin Templeton CEO a bitcoin believer?

As she states in interviewThe CEO is known for saying that “bitcoin is the biggest distraction from one of the biggest disruptions in financial services,” which has led many people to believe that she does not support or believe in the crypto asset.

Contrary to this belief, he notes that the launch of the Franklin bitcoin ETF (EZBC) shows the asset management company's confidence in btc and blockchain technology.

Johnson cites the security that bitcoin provides as one of the reasons that made her a “believer.” Holding and managing her private keys, which she claims to do at any given time, gives the asset what she calls an “insurance or security component.”

This component makes cryptocurrency investors more confident in bitcoin, as there is a “fear component” linked to traditional assets, as she explains:

One of the things that made me a believer is: while I was traveling the world talking to people who told you 'I keep 50% of my savings in bitcoin because if I save the wrong thing in my country, I could keep my assets.' confiscated.' I remember talking to someone in Israel who said, 'My parents and your parents have had all their assets confiscated' and they keep a portion of it in bitcoin. So, there is a component of fear that is considered almost a component of insurance or security.

The CEO also listed the importance of bitcoin in “driving the next real opportunity in this blockchain world,” another reason for her to believe in the asset.

Trust Blockchain technology

As for the reason behind the market demand that led to the approval of the bitcoin ETF by the US Securities and Exchange Commission (SEC), the CEO believes that there are several reasons for this, including the crucial role of bitcoin, “from a blockchain point of view”, in payment capacity.

Johnson further explained that blockchain technology “will open up a lot of really interesting technology investment opportunities,” as bitcoin is “one of the right opportunities here.” Additionally, the CEO recalled the asset manager's previous use and reliance on blockchain technology:

In fact, we launched and tokenized a money market fund. We are the first mutual fund or the first traditional asset manager to actually launch a 40-share fund on a public blockchain, on the stellar blockchain.

Lastly, when asked what might attract a traditional investor to invest in an ETF, he explains that there is a market and use case for both. But while holding keys may be ideal for many, it can also be complicated to understand.

ETFs may be a better fit for some investors who want to diversify their portfolio while still “being able to open it up, have access through an ETF and just through their account.”

bitcoin is trading at $40,990.5 on the hourly chart. Source: BTCUSDT on TradingView.com

Featured image from Unsplash.com, chart from TradingView.com

Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.