Franklin Crypto CIO says crypto prices are disconnected from fundamentals

Latest developments: In an interview with Jennifer Sanasie on CoinDesk’s Public Keys Ginns said the convergence between traditional finance and crypto continues to gain momentum despite a prolonged market slump

• Franklin Crypto aims to build a leading fundamental crypto investment platform following Franklin Templeton’s acquisition of 250 Digital, the firm that emerged from CoinFund’s liquid investment business, Ginns said.
• While venture capital remains a natural fit for institutional allocators, Ginns said current market conditions also make liquid crypto investments increasingly attractive.
• “There’s a big disconnect between where prices are and real fundamentals,” Ginns said, pointing to growing institutional engagement across the sector.

What this means: Ginns identified several developments that could bring more institutional capital into crypto markets.

• He pointed to Robinhood’s blockchain initiative as an example of traditional financial distribution moving onto crypto rails, creating new opportunities for developers and users.
• Ginns also cited growing interest in tokenized money market funds, which could allow investors to earn yield while maintaining on-chain portability.
• Tokenized equities, stablecoin adoption and broader financial infrastructure are all contributing to the convergence of traditional finance and blockchain technology, he said.