Franklin Templeton CEO: Blockchain Infrastructure is Key to Crypto Investment

Franklin Templeton's CEO, Jenny Johnson, believes the best crypto investment is in "picks and shovels" - the underlying infrastructure of blockchain technology, rather than digital assets themselves. Johnson sees promise in blockchain networks, validators, and consumer apps, and expects financial products like mutual funds and ETFs to eventually move to blockchains. However, regulation remains the biggest inhibitor to this shift.

Franklin Templeton's CEO, Jenny Johnson, has offered a compelling perspective on the future of cryptocurrency investment, suggesting that the best opportunities lie in the underlying infrastructure of blockchain technology, rather than digital assets themselves. Speaking at the SALT conference in Jackson Hole, Wyoming, Johnson emphasized that while Bitcoin may serve as a "fear currency" for those in countries with unstable financial systems, it is a distraction from the true potential of blockchain technology [1].

Johnson believes that the most promising areas for investment are in the infrastructure that supports blockchain networks. She refers to these as the "picks and shovels" of the crypto world, highlighting the importance of blockchain "rails" and consumer apps. She sees validators, the entities that maintain blockchain networks, as another area of potential growth, offering increased transparency and a "game changer" for active investment managers [1].

Under Johnson's leadership, Franklin Templeton has expanded its engagement with the crypto sector, launching multiple crypto exchange-traded products and introducing the OnChain U.S. Government Market Fund, a tokenized investment vehicle. Johnson expects financial products like mutual funds and ETFs to eventually move to blockchains, where they could operate more efficiently and at lower cost. However, she also acknowledges that regulatory challenges remain a significant barrier to this shift, with the sheer number of digital assets likely to fail presenting a level of risk that regulators are not yet prepared to manage [1].

The landscape of cryptocurrency mining has also undergone significant transformation following Ethereum's transition to a proof-of-stake (PoS) model. This shift rendered GPU-based proof-of-work (PoW) mining for Ethereum obsolete, causing a redistribution of hash power across other PoW chains. Projects such as Ethereum Classic, Ravencoin, Ergo, and Flux saw hash rates surge by as much as 808% in the months following the transition [2].

The post-Ethereum shift has prompted miners to adopt dual-use computing strategies and integrate mining with renewable energy sources. This trend reflects a broader industry trend toward sustainability and diversification. Despite concerns over environmental impact, proof-of-work remains the most tested and censorship-resistant consensus mechanism in the blockchain space [2].

As the industry moves forward, the lines between Bitcoin and altcoin mining are blurring, with both sectors exploring new models for sustainability and profitability. While Bitcoin maintains its dominance in hashrate and security, smaller chains are carving out niche roles through innovation and community-driven development. The future of crypto is increasingly defined not just by the assets themselves, but by the evolving infrastructure and regulatory landscape that supports them [2].

References:
[1] https://www.coindesk.com/business/2025/08/19/best-crypto-investment-ideas-according-to-ceo-of-usd1-6t-asset-manager-franklin-templeton
[2] https://finance.yahoo.com/news/best-crypto-investment-ideas-according-190552772.html