Franklin Templeton, a prominent asset manager, is venturing into the world of cryptocurrency by considering a new fund tailored for institutional investors. This fund aims to diversify beyond the well-known Bitcoin (BTC) and Ether (ETH) and expose investors to alternative coins, as reported on June 6 by The Information. Sources familiar with the matter suggest that the fund will also provide staking rewards to investors.
While the specific altcoins that will make up the fund’s portfolio remain undisclosed, Franklin Templeton has recently shown admiration for the growth of the Solana network in 2024. Data from analytics firm Messari reveals that in the first quarter of 2024, Solana’s spot decentralized exchange volume surged by an impressive 319% to $1.5 billion compared to the previous quarter.
With assets under management totaling around $1.64 trillion as of March 2024, Franklin Templeton is recognized as one of the largest investment management firms globally. The company has been actively engaging in the crypto space and has introduced various funds, including a popular spot Bitcoin exchange-traded fund (ETF) launched in January.
Additionally, 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. The company has expressed enthusiasm for Ethereum and its ecosystem, foreseeing a positive trajectory despite recent challenges.
In a recent development on June 6, Franklin Templeton unveiled a new feature on its Benji Investments platform, allowing investors to utilize USD Coin (USDC) stablecoin to invest in its money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX). This fund, the first U.S.-registered mutual fund to leverage public blockchain for transactions and ownership records, assigns each share a BENJI token.
The conversion process will be facilitated by the crypto and stablecoin infrastructure platform Zero Hash, as stated by the company. According to data from Dune Analytics, Franklin’s money market fund presently oversees $357 million in assets.
As the cryptocurrency landscape continues to evolve, Franklin Templeton remains at the forefront of innovation, offering investors diverse opportunities beyond traditional investment avenues.