An executive at $1.5 trillion asset management giant Franklin Templeton says big institutions are becoming increasingly interested in digital assets.
In a new interview with Scott Melker, Franklin Templeton Senior Vice President Sandy Kaul says that financial institutions are now scrutinizing cryptocurrencies following the deep industry correction over the past year.
According to Kaul, institutions have an interest in investing in asset classes at deep discounts.
โInstitutions hate to buy in markets that are already rising. They want to position themselves when things are cheap and when no one is really looking at a space. And they have the patience to wait.
So I think you've seen a migration of interest from the retail sector to the institutional side of the equation. And I think a lot of the leading institutions in the world, that were first in hedge funds, that were first in private equity, that were first in private debt, are looking at the crypto domain as the next, as I shall say, the border risk market, and they are using this crypto winter period to start implementing their programs.โ
Kaul predicts that institutional investments will ultimately form a strong foundation for the digital asset space.
โI think that institutional interest is beginning to be seen. I think that they will come in every time the market falls and put in a little more and a little more, and over time that will start to build a good base for the markets.
And then when the next bull run really starts to happen and retail interest starts to build again, that institutional floor will be under the market. I think this is a cycle, and we're in the part of the cycle that's actually super healthy for long-term growth of the market because these institutions have staying power."
At the time of writing, the crypto market capitalization is $1.05 trillion, more than 66% less than its all-time high of $3.09 trillion.
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