Franklin Templeton, an asset manager, is venturing into the world of cryptocurrencies by considering a new fund specifically designed for institutional investors. This move marks a shift from its traditional offerings of Bitcoin (BTC) and Ether (ETH).
As reported on June 6 by The Information, Franklin Templeton is contemplating the launch of a private fund that would provide institutional investors exposure to alternative coins, also known as altcoins. Sources familiar with the matter revealed that the fund would also offer staking rewards.
While the specific altcoins that would make up the fund’s portfolio were not disclosed in the report, Franklin Templeton has recently commended the growth of the Solana network. According to data from analytics firm Messari, Solana’s spot decentralized exchange volume surged by 319% to $1.5 billion in the first quarter of 2024.
With assets under management totaling approximately $1.64 trillion as of March 2024, Franklin Templeton ranks among the largest investment management firms on a global scale.
The company has been actively engaged in the cryptocurrency space, with various funds in its portfolio. Notably, its spot Bitcoin exchange-traded fund (ETF) launched in January has gained significant popularity. Furthermore, Franklin Templeton has been advocating for a spot Ether ETF, which recently received approval from the United States Securities and Exchange Commission (SEC) and is awaiting clearance to launch.
In a previous statement on X, the company expressed its enthusiasm for Ether (ETH) and its ecosystem, emphasizing the promising future prospects despite recent challenges.
In a separate development on June 6, Franklin Templeton introduced a new feature for investors on its Benji Investments platform. Investors can now use USD Coin (USDC) stablecoin to invest in its money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX). This fund was the first U.S.-registered mutual fund to leverage public blockchain for transactions and ownership records, with each share represented by the BENJI token.
The conversion process will be facilitated by Zero Hash, a crypto and stablecoin infrastructure platform, according to the company’s statement. Currently, Franklin’s money market fund manages assets worth $357 million, as per data from Dune Analytics.
In addition to these developments, Franklin Templeton also shared insights on alternative methods for blockchain fundraising in a recent magazine feature. It highlighted seven ICO alternatives, including crypto airdrops and IDOs, as viable options for fundraising in the blockchain space.