Franklin Templeton digital assets head Seth Ginns said liquid crypto assets are gaining appeal among institutional investors as macro conditions and the recent pullback in cryptocurrency prices reshape allocation preferences. In comments shared on Aug. 27, Ginns said venture capital has historically been the most compelling segment for institutions because it belongs to an asset class they are already used to allocating to. He added that other areas, including private credit, may also appeal to institutional investors.
Still, Ginns said the current setup is shifting. Looking at the broader macroeconomic backdrop alongside the recent retreat in crypto prices, he said the attractiveness of liquid crypto assets is rising sharply at this stage. He also pointed to a longer-term structural change, saying the convergence of traditional finance and the crypto sector is reaching an inflection point with unprecedented force. The remarks offer a view into how a major asset manager is assessing the intersection of TradFi and decentralized finance as institutional interest evolves.
PANews reported on Aug. 27 that Seth Ginns, head of digital assets at Franklin Templeton, shared his view on the convergence of traditional finance and decentralized finance.
Ginns said venture capital has been the most attractive area for institutional investors because it falls within an asset class that institutions are already accustomed to allocating to. He added that other segments, including private credit, may also hold appeal for institutional investors.
At the same time, he said the appeal of liquid crypto assets is now rising sharply when viewed against the macroeconomic backdrop and the recent pullback in cryptocurrency prices.
On the longer-term trend of integration between traditional finance and the crypto industry, Ginns said the inflection point in that convergence is arriving with unprecedented strength.
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