VP At Franklin Templeton: Ethereum Staking Yield Presenting Big Opportunities For Institutions Investors

The $1.5 trillion asset management firm Franklin Templeton claims that the Ethereum (ETH) staking yield is offering significant potential for institutions interested in the cryptocurrency markets.

Sandy Kaul, senior vice president of Franklin Templeton, is questioned by Raoul Pal in a recent Real Vision interview on whether Ethereum staking may spur institutional adoption.

Kaul responds by saying,

“Let me just say, stay tuned to that space because I’ve seen some extremely powerful products that I think will fulfill exactly what you’re talking about.”

The asset management specialist claims that the growth of the cryptocurrency market reminded her of the mid-2000s hedge fund business when institutions seized the opportunity to establish themselves.

“I think what happened in the hedge fund industry up to and post 2008 really is instructive here… We saw almost $2 trillion in assets come in in a three year period, so a huge influx of money, interestingly, taking the industry close to $3 trillion in assets, which is right about where the digital space got to before the last collapse…

Institutions are long-term holders. They wait for these kinds of wipeouts to come in and establish positions, and they will wait for the market to turn. To be very clear, it’s usually the most market-leading institutions that are really looking to be very creative in their portfolios and who have really shifted to this factor-driven model and realized that this digital asset space is bringing in a whole new set of what we’re calling ‘crowd factors’ at Franklin Templeton that they have never been able to get exposure to in the space.”

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Kaul predicts that there might be another wave of institutional investors entering the market during the next bull run.

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