Why Franklin Templeton for digital asset investing?
At Franklin Templeton, we have been building digital asset expertise since 2018. The Franklin Templeton Digital Assets Team focuses on extensive research and technical development of new products. We’re actively involved in digital asset networks and develop platforms, product expertise and strategy differentiation to help clients achieve investment in the tokenised asset ecosystem.
US$661 mn
Digital assets under management
40+
Years traditional finance expertise
50+
Dedicated investment professionals
Data as of 30/06/2025.
Could digital assets be like the tech stock of the ‘90’s?
User Growth of the Internet Parallels Growth within Crypto
1995-2002 vs. 2017-2024
Sources: Statista, World Bank. Crypto Users as of December 2024.
Crypto Still Represents a Small Value Share of the Stock Market
January 1995 - December 2024
Source: MSCI. As of December 31, 2024.
The benefits of investing in digital assets
Investing in digital assets presents a compelling opportunity in today’s evolving financial landscape providing access to a borderless and decentralised financial system, which can potentially offer greater transparency, efficiency and accessibility compared to traditional financial instruments.
10-Year Risk and Return (%)
Sources: Franklin Templeton, Bloomberg, MSCI, Cryptocurrency Prices, s&p. 10-year historical observations are as of 2Q 2023.
* Data for All Crypto Market Cap is from July 2017 – June 2024. The indices used are MSCI World Index for Global Stocks, Bloomberg Global-Aggregate Total Return Index Value Unhedged USD Index for Global Bonds and Total of All Cryptocurrencies Sector for s&p cryptocurrency largecap pr usd. Standard deviation is a statistic used as a measure of the dispersion or variation in a distribution, or data set, from its mean, or average; it measures the volatility of an investment’s return over a particular time period; the greater the number, the greater the volatility.
Explore how digital assets can impact a portfolio
Inclusion of digital assets in a traditional 60/40 stock and bond portfolio has the potential to enhance the risk/return relationship.
STEP 1
Choose an allocation to digital assets below and compare the results of the hypothetical portfolio.
The modern 60/40 portfolio theory combines the traditional 60% stock and 40% bond portfolio allocation with a basket of digital assets ranging from 3%, 5% and 10% of the portfolio allocation to determine overall returns generated from the modern asset allocation over the last 3 years. For hypothetical performance, gross of fee returns do not include trading expenses and net of fee returns are reduced with a model fee of 3%. Gross and net performance do not reflect any fees, expenses or sales charges. These hypothetical results have not accounted for any liquidity factors which could have an impact on overall portfolio performance. Hypothetical portfolios are rebalanced quarterly. The results do not represent actual results and actual results may significantly differ from the hypothetical returns being presented. Indexes are unmanaged, and one cannot invest directly in an index. Based on market indices for the past three years, an allocation to digital assets have the potential to show higher returns and Sharpe ratio, or risk-adjusted return, in comparison to a traditional 60/40 portfolio based on the hypothetical scenarios.
Data sources for the hypothetical portfolios: Yahoo Finance & FTDA Resources, 31 December 2024. The hypothetical portfolios shown are comprised of the following asset class representative benchmarks: Stocks as represented by the S&P 500 Index, Bonds as represented by the Bloomberg US Aggregate Bond Index and Digital Assets as represented by the Cryptocurrency Largecap PR USD. Since inception date is 31 December 2018 for all hypothetical portfolios.
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Important information
Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.
Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended as a recommendation to buy or sell any investment or interest.
Investment risks
Digital asset investments have historically been subject to greater volatility of returns with additional risks associated with the issuance, redemption, transfer, custody and record keeping of shares maintained and recorded primarily on a blockchain.