Introduction
Franklin Templeton, a leading investment management giant with $1.5 trillion in assets, is eyeing a broader expansion into the world of cryptocurrencies. The recent approval of 11 new spot bitcoin exchange-traded funds (ETFs) has paved the way for further filings in the industry. Sandy Kaul, the Head of Digital Assets at Franklin Templeton, believes in the potential of the crypto domain and aims to offer investors more opportunities to access this innovative market.
Franklin Templeton Sets Sights on Expanding Crypto Horizons
In a series of tweets about crypto and blockchain technology, Franklin Templeton discussed ethereum (ETH) and solana (SOL) on social media. The company recently launched its spot bitcoin ETF, which currently holds 1,160 BTC worth around $47 million. Sandy Kaul, the asset manager's digital assets sector chief, expressed the firm's expectation of more filings in the future.
Embracing the Crypto Domain
Kaul emphasized Franklin Templeton's recognition of the potential of the entire crypto domain. The firm plans to evolve its product range to provide investors with more opportunities to access this innovation and benefit from the new protocol economy. When asked about the company's interest in ethereum (ETH), Kaul did not specify but hinted at possible future exchange-traded product (ETP) filings from Franklin Templeton. She stated, "You can anticipate that you will see more filings from us at some point."
Exploring Beyond Bitcoin
Kaul believes that the crypto market offers numerous opportunities beyond bitcoin. With many coins boasting large market caps, Franklin Templeton aims to explore and capitalize on these different opportunities. Ethereum, for instance, serves as an app development platform and fosters its own ecosystem. Kaul highlighted that this provides a slightly different value proposition compared to bitcoin. She emphasized the importance of diversification in investment portfolios, stating that it is better to have multiple assets rather than focusing solely on one.
Bitcoin as a Digital Commodity
Regarding bitcoin's categorization, Kaul agreed with the analogy of bitcoin being similar to a commodity like gold. She pointed out the digital scarcity programmed into bitcoin, with only 21 million coins ever to be created. The decentralized process allows for tracking every coin, ensuring a controlled supply. Kaul drew parallels between bitcoin and the gold market, highlighting the similarities in terms of scarcity and tracking.
Volatility in Crypto Markets
Addressing bitcoin's volatility, Kaul compared it to the volatility observed in commodity markets. She acknowledged that responsible trading firms like Franklin Templeton are experienced in handling such volatility. Kaul mentioned that despite the complexity of bitcoin, it presents a great opportunity for investors even if they don't fully understand it.
Conclusion
Franklin Templeton's digital assets lead, Sandy Kaul, envisions a broader expansion into the crypto domain and expects more filings in the future. The firm recognizes the potential of cryptocurrencies beyond bitcoin and aims to offer investors diverse opportunities in this rapidly evolving market. With a focus on ethereum and other coins, Franklin Templeton embraces the benefits of diversification and acknowledges the similarities between bitcoin and commodities like gold. As the crypto market continues to grow, Franklin Templeton is determined to navigate the volatility and provide investors with valuable opportunities in this innovative space.
What are your thoughts on Franklin Templeton's plans for expanding into the crypto market? Share your opinions in the comments section below.
Frequently Asked Questions
What are the pros & con's of a golden IRA?
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. However, there are also disadvantages to this type of investment.
You could lose all of your accumulated money if you take out too much from your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do withdraw funds, you'll need to pay a penalty.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
You can purchase insurance if you want to keep your money out of a bank. Most insurers require you to own a minimum amount of gold before making a claim. Insurance that covers losses upto $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit the amount of gold that you are allowed to own. Others let you choose your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts offer flexibility for buying gold. Futures contracts allow you to create a contract with a specified expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does NOT include theft protection and loss due to fire or flood. It does include coverage for damage due to natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
Insurance is not enough. You also need to think about the cost of gold storage. Insurance doesn't cover storage costs. In addition, most banks charge around $25-$40 per month for safekeeping.
If you decide to open a gold IRA, you must first contact a qualified custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians aren't allowed to sell your assets. Instead, they must keep your assets for as long you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Also, you should specify how much each month you plan to invest.
After completing the forms, send them along with a check or a small deposit to your chosen provider. After reviewing your application, the company will send you a confirmation mail.
A financial planner is a good idea when opening a gold IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can help you find cheaper insurance options to lower your costs.
How does gold perform as an investment?
The supply and demand for gold affect the price of gold. Interest rates can also affect the gold price.
Because of their limited supply, gold prices can fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
What is the best precious-metal to invest?
This question depends on how risky you are willing to take, and what return you want. While gold is considered a safe investment option, it can also be a risky choice. For example, if your goal is to make quick money, gold may not suit you. Silver is a better investment if you have patience and the time to do it.
If you don’t want to be rich fast, gold might be the right choice. Silver may be a better option for investors who want long-term steady returns.
How can you withdraw from an IRA of Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, determine how much money you plan to withdraw from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once you have completed these calculations, you need to open your brokerage account. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities will accept bullion bars, others require you to buy individual coins. You will need to weigh each one before making a decision.
Bullion bars require less space, as they don't contain individual coins. However, each coin will need to be counted individually. However, you can easily track the value of individual coins by storing them in separate containers.
Some prefer to keep their money in a vault. Others prefer to store their coins in a vault. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
Should You Invest in gold for Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. If you are unsure which option to choose, consider investing in both options.
Gold offers potential returns and is therefore a safe investment. It is a good choice for retirees.
While many investments promise fixed returns, gold is subject to fluctuations. Therefore, its value is subject to change over time.
However, this does not mean that gold should be avoided. It just means that you need to factor in fluctuations to your overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be transported.
You can always access your gold as long as it is kept safe. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold rises in the face of a falling stock market.
You can also sell gold anytime you like by investing in it. As with stocks, your position can be liquidated whenever you require cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Don't purchase too much at once. Start by purchasing a few ounces. Next, add more as required.
Remember, the goal here isn't to get rich quickly. It is to create enough wealth that you no longer have to depend on Social Security.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
cftc.gov
irs.gov
investopedia.com
bbb.org
How To
Tips for Investing with Gold
One of the most sought-after investment strategies is investing in gold. Because investing in gold has many benefits. There are many ways you can invest in gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
Before buying any type gold, it is important to think about these things.
- First, verify that your country permits gold ownership. If it is, you can move on. Or, you might consider buying gold overseas.
- Secondly, you should know what kind of gold coin you want. You can go for yellow gold, white gold, rose gold, etc.
- The third factor to consider is the price for gold. It is best to start small and work your way up. When purchasing gold, diversify your portfolio. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- Lastly, you should never forget that gold prices change frequently. Keep an eye on current trends.
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By: Jamie Redman
Title: Franklin Templeton Expands Crypto Horizons and Anticipates More ETP Filings
Sourced From: news.bitcoin.com/franklin-templeton-eyes-broad-crypto-expansion-beyond-bitcoin-foresees-more-etp-filings/
Published Date: Fri, 19 Jan 2024 19:00:21 +0000
