In the picturesque setting of Jackson Hole, Wyoming, at the SALT conference, Jenny Johnson, the CEO of Franklin Templeton, one of the world’s largest asset managers, unveiled her bold vision for the future of cryptocurrency investments. Speaking on August 19, 2025, Johnson emphasized that while Bitcoin remains the poster child of crypto, the real investment potential lies in the “picks and shovels” of blockchain technology—the foundational infrastructure that supports digital assets.
The Infrastructure Play
According to Johnson, the allure of Bitcoin as a “fear currency”—a haven for those in unstable financial environments—is undeniable. However, she asserts that Bitcoin’s prominence is overshadowing a more significant financial revolution: the blockchain networks themselves. “Bitcoin is the greatest distraction for one of the greatest disruptions coming to financial services,” she stated, emphasizing the transformative power of blockchain technology over the digital assets it supports. This sentiment aligns with recent discussions on how S&P Dow Jones is exploring tokenized indexes, highlighting the growing interest in blockchain infrastructure.
Johnson’s strategy focuses on investing in the blockchain “rails”—the fundamental structures that enable the secure and efficient operation of decentralized applications. These systems, she argues, are the bedrock upon which future financial services will be built. “The picks and shovels are the baseline of the strong, layered apps,” Johnson noted, highlighting the immense potential she sees in these foundational technologies.
The Role of Validators and Transparency
Beyond infrastructure, Johnson points to the critical role of validators, entities that maintain blockchain networks and ensure their integrity. For active investment managers, she sees them as a “game changer,” offering unprecedented transparency. “Just imagine seeing on public equity all the transactions that go in and out of that company and how much information that gives you,” she enthused, illustrating the potential for real-time insights into financial operations. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Under Johnson’s leadership, Franklin Templeton has already made significant strides into the digital asset realm. The firm has launched several crypto exchange-traded products and introduced the OnChain U.S. Government Market Fund, a tokenized investment vehicle that reflects her forward-thinking approach. These initiatives underscore her belief in the long-term viability of blockchain as a transformative force in financial markets.
Regulatory Hurdles and Future Prospects
Despite her optimism, Johnson acknowledges the significant hurdles that remain, particularly in the realm of regulation. She describes regulatory uncertainty as the “biggest inhibitor” to the widespread adoption of blockchain-based financial products like mutual funds and ETFs. The reluctance of regulators stems from the high-risk nature of digital assets, many of which are likely to fail, creating a challenge that Johnson believes regulators are not yet equipped to handle.
Looking ahead, Johnson envisions a future where mutual funds and ETFs operate on blockchain platforms, offering increased efficiency and reduced costs. However, she cautions that this transition will not happen overnight. “Regulation is always a step behind innovation,” she remarked, hinting at the inevitable, albeit slow, pace of change.
In the ever-evolving world of cryptocurrency, Johnson’s insights offer a compelling blueprint for investors seeking to capitalize on the next wave of financial innovation. As the industry grapples with regulatory challenges and the volatile nature of digital assets, her focus on the underlying infrastructure presents a strategic approach that could redefine investment strategies in the coming years. Whether her vision will materialize as anticipated remains an open question, inviting investors to consider where their bets are best placed amid the shifting landscapes of blockchain technology.
Source
This article is based on: Best Crypto Investment Ideas According to CEO of $1.6T Asset Manager Franklin Templeton
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
