Franklin Templeton, an asset manager, is venturing into the realm of cryptocurrency by considering a new fund specifically designed for institutional investors. This move marks a significant expansion of their offerings beyond the well-known cryptocurrencies Bitcoin (BTC) and Ether (ETH).
As reported on June 6 by The Information, Franklin Templeton is contemplating the creation of a private fund aimed at introducing institutional investors to alternative coins, commonly known as altcoins. Sources familiar with the matter suggest that this fund would also provide staking rewards to investors.
Although the report does not specify which altcoins will be included in the fund’s portfolio, Franklin Templeton has recently expressed admiration for the Solana network’s impressive growth in 2024. According to data from 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 around $1.64 trillion as of March 2024, Franklin Templeton stands as one of the largest investment management firms globally. The company has been actively involved in the cryptocurrency space, with a range of funds available. Notably, they launched a spot Bitcoin exchange-traded fund (ETF) in January, which has garnered significant attention.
Additionally, Franklin Templeton is a key proponent of a spot Ether ETF, recently granted approval by the United States Securities and Exchange Commission (SEC). The ETF is currently awaiting final clearance from the regulatory agency to commence operations.
In a previous statement, the company expressed optimism about Ethereum (ETH) and its ecosystem, despite recent challenges. They foresee a promising future for Ethereum with strong momentum propelling the ecosystem forward.
Furthermore, on June 6, Franklin Templeton unveiled a new feature on its Benji Investments platform. Investors can now use USD Coin (USDC) stablecoin to invest in their money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX). This fund was the first U.S.-registered mutual fund to utilize a public blockchain for transactions and ownership records, with each share represented by the BENJI token.
The conversion process will be facilitated by the crypto and stablecoin infrastructure platform Zero Hash, as announced by the company. Currently, Franklin’s money market fund manages assets worth $357 million, according to data from Dune Analytics.
In conclusion, Franklin Templeton’s foray into cryptocurrency and blockchain technology signifies a bold step towards embracing innovation and diversifying investment opportunities in the evolving financial landscape.