Why Franklin Templeton for digital asset investing?
At Franklin Templeton, we have been building digital asset expertise since 2018. Our dedicated independent group is immersed in intensive research and technical development of new products. We engage 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 (%)
Past performance is not necessarily indicative nor a guarantee of future performance.
Sources: Franklin Templeton, Bloomberg, MSCI, Cryptocurrency Prices, S&P. 10-year historical observations are as of 1Q 2025.
* Data for All Crypto Market Cap is from July 2017 – March 2025. 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 portfolio return frontier.
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: Bloomberg, MSCI, Macrobond, Solactive as of 31 December 2024. The hypothetical portfolios shown are comprised of the following asset class representative benchmarks: Stocks are represented by the MSCI World GR Index, Bonds are represented by the Bloomberg Global 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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Our knowledge hub
Education
Alternatives education by Franklin Templeton
The Franklin Templeton knowledge hub provides educational resources to help empower partners to navigate alternative investments. Explore our knowledge hub section to find out more about our experts’ latest thinking, unique opportunities, and an in-depth understanding of the alternatives market.
Insight
Accessing private assets: Liquidity in an illiquid world
The first in our ‘Accessing Private Assets’ series aimed at providing transparency on private asset products, we explore how managers support the periodic liquidity (subscriptions and redemptions) available to investors in semi-liquid fund structures.
Insight
The cost of being too liquid
Private markets have historically delivered an “illiquidity premium” which has been captured by many institutions in their asset allocation to alternatives. Learn more about the illiquidity premium and get some ideas about allocating to private markets.
Insight
Unlocking opportunities: Understanding the growing secondary market
The global secondary market has grown over the past three decades primarily because of the increased supply of capital committed to private investment funds, according to Lexington Partners. They believe the backdrop for the secondary market continues to remain attractive.
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. For example, shares that are issued using blockchain technology would be subject to risks (including the following: blockchain is a rapidly-evolving regulatory landscape, which might result in security, privacy or other regulatory concerns that could require changes to the way transactions in the shares are recorded).
Important information
Franklin Templeton Australia Limited (ABN76 004 835 849, AFSL 240827) is the Responsible Entity and/or investment manager of the products included in this website.
Information on this website is intended to be of general information only and does not constitute investment or financial product advice. It expresses no views as to the suitability of the products or services described as to the individual circumstances, objectives, financial situation, or needs of any investor. You should conduct your own investigation or consult a financial adviser before making any decision to invest. Please read the relevant Product Disclosure Statements (PDSs), and any associated reference documents before making an investment decision. Neither Franklin Templeton Australia, nor any other company within the Franklin Templeton group guarantees the performance of any Fund, nor do they provide any guarantee in respect of the repayment of your capital.
In accordance with the Design and Distribution Obligations, we maintain Target Market Determinations (TMD) for each of our Funds. All documents can be found via the Literature Page or by calling 1800 673 776.
Past performance is not an indicator nor a guarantee of future performance. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. All investments involve risks, including possible loss of principal.
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