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Why digital assets?

Digital asset investing involves investing capital into cryptocurrencies, digital tokens, digital securities and other forms of digital ownership, providing investors with a pathway to engage with the growing digital economy and potentially capitalise on the appreciation of these assets over time. The digital asset market has witnessed substantial growth in recent years, with continued expansion anticipated, offering investors the potential to benefit from portfolio diversification and potential returns.

The alternative investments mentioned in this website may not be available to retail investors in Hong Kong.

Why Franklin Templeton for digital asset investing?

At Franklin Templeton, we have been building digital asset expertise since 2018. The Franklin Templeton Digital Assets Team focuses on extensive research and technical development of new products. We’re actively involved 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

Graph

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

Graph

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.

Chart

Scatter chart with 3 data series.
The chart has 1 X axis displaying 10-Year Annualised Standard Deviation (%). Data ranges from 6.4 to 87.6.
The chart has 1 Y axis displaying 10-Year Annualised Total Return (%). Data ranges from 0.2 to 58.5.
End of interactive chart.

Sources: Franklin Templeton, Bloomberg, MSCI, Cryptocurrency Prices, s&p. 10-year historical observations are as of 2Q 2023.
* Data for All Crypto Market Cap is from July 2017 – June 2024. 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.

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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

This document is intended to be of general interest only. This document should not be construed as individual investment advice or offer or solicitation to buy, sell or hold any shares of fund or security. The information provided for any individual security mentioned is not a sufficient basis upon which to make an investment decision. Investment involves risks. Value of investments may go up as well as down and past performance is not an indicator or a guarantee of future performance. The investment returns are calculated on NAV to NAV basis, taking into account of reinvestments and capital gain or loss. The investment returns are denominated in stated currency, which may be a foreign currency other than USD and HKD (“other foreign currency”). US/HK dollar-based investors are therefore exposed to fluctuations in the US/HK dollar / other foreign currency exchange rate. Please refer to the offering documents for further details, including the risk factors.

The data, comments, opinions, estimates and other information contained herein may be subject to change without notice. There is no guarantee that an investment product will meet its objective and any forecasts expressed will be realized. Performance may also be affected by currency fluctuations. Reduced liquidity may have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where an investment product invests in emerging markets, the risks can be greater than in developed markets. Where an investment product invests in derivative instruments, this entails specific risks that may increase the risk profile of the investment product. Where an investment product invests in a specific sector or geographical area, the returns may be more volatile than a more diversified investment product. Franklin Templeton accepts no liability whatsoever for any direct or indirect consequential loss arising from use of this document or any comment, opinion or estimate herein. This document may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

Any share class with “(Hedged)” in its name will attempt to hedge the currency risk between the base currency of the Fund and the currency of the share class, although there can be no guarantee that it will be successful in doing so. In some cases, investors may be subject to additional risks.

Please contact your financial advisor if you are in doubt of any information contained herein.

For UCITS funds only: In addition, a summary of investor rights is available from here. The summary is available in English and Chinese.

The fund(s)/ sub-fund(s) are notified for marketing in various regions under the UCITS Directive. The fund(s)/ sub-fund(s) can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.

For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund(s)/ sub-fund(s) and will not be investing directly in the underlying assets of the fund(s)/ sub-fund(s).

For AIFMD funds only: The Franklin Floating Rate Fund PLC (the Fund) is an investment company with variable capital incorporated in Ireland on 1 December 1999 as a public limited company under registration number 316174. The Fund is authorised by the Central Bank of Ireland as a designated investment company pursuant to to Section 1395 of Part 24 of the Companies Act 2014. The Fund's registered office is Capital Dock, Sir John Rogerson's Quay, Dublin Ireland.

In addition, a summary of investor rights is available from here. The summary is available in English and Chinese.

The fund(s)/ sub-fund(s) are notified for marketing in various regions under the AIFMD Directive. The fund(s)/ sub-fund(s) can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 32a of the AIFMD Directive.

For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund(s)/ sub-fund(s) and will not be investing directly in the underlying assets of the fund(s)/ sub-fund(s).

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This document is issued by Franklin Templeton Investments (Asia) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.

Unless stated otherwise, all information is as of the date stated above. Source: Franklin Templeton.