Franklin Templeton’s Max Gokhman explained what the investment firm is doing to meet increasing client demand for crypto assets.

As the digital-asset space matures, institutional interest is rising, especially due to increased client demand. However, most financial institutions are still lagging behind when it comes to this asset class, says Max Gokhman, CFA, deputy CIO at Franklin Templeton Investment Solutions. In an interview with crypto.news, Gokhman explained what the investment giant is doing to meet demand from its clients that want to invest in crypto assets.

crypto.news: Do you see growing demand for digital assets among your clients?

Max Gokhman: It depends on the client segment. If we’re talking about large institutional investors, sovereign wealth funds, pensions, the demand is still minimal. If we’re talking about individual investors, the demand is rising.

Interestingly, there’s growing interest from traditional investors, reflected in the $175 billion of flows into digital asset ETFs. There’s also demand from the crypto-native side, who are looking to diversify out of pure crypto holdings into a more balanced portfolio.

Then there’s the middle ground, family offices and smaller endowments. Many of them are seeing increasing demand for digital assets and want to integrate them into their broader portfolios.

So one of the things we’ve been thinking about is how to build appropriate products for each group. For large institutions, it’s about using digital assets without introducing excess volatility. For retail investors, it’s about scaling digital assets into a traditional portfolio with a risk-aware framework. And for family offices and endowments, it’s about integrating them into the total portfolio—similar to how we treat less liquid assets like private equity, alongside more traditional public market investments.

It’s a changing picture, and I expect demand to continue rising, especially as regulatory clarity improves.<

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Author: David Marsanic