Financial services firm Franklin Templeton is delving into the world of cryptocurrency with a new fund tailored for institutional investors, expanding its portfolio beyond mainstream cryptocurrencies like Bitcoin (BTC) and Ether (ETH).
As per a report dated June 6 from The Information, the investment company is contemplating the creation of a private fund to introduce institutional investors to alternative coins, also known as altcoins. The fund is also said to offer staking rewards, as revealed by sources familiar with the situation.
The report does not specify which altcoins will be included in the fund’s portfolio, but Franklin Templeton has recently shown admiration for 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 compared to the previous quarter.
With assets under management totaling around $1.64 trillion as of March 2024, Franklin Templeton stands as one of the largest global investment management firms.
The company has been actively engaged in the cryptocurrency sector with various funds, including a popular spot Bitcoin exchange-traded fund (ETF) launched in January. Franklin is also a supporter of a spot Ether ETF, which has received approval from the United States Securities and Exchange Commission (SEC) and is awaiting final clearance to launch.
In a previous statement on X, Franklin Templeton expressed enthusiasm for Ether and its ecosystem, highlighting a positive outlook despite recent challenges faced by the cryptocurrency.
On June 6, Franklin Templeton unveiled a new feature for investors on its Benji Investments platform. Investors can now use the 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 conduct transactions and record ownership on a public blockchain, with each share represented by the BENJI token.
The conversion process will be facilitated by the crypto and stablecoin infrastructure platform Zero Hash, according to a company statement. As per data from Dune Analytics, Franklin’s money market fund currently oversees $357 million in assets.
In the current landscape, there are various alternatives to initial coin offerings (ICOs) for blockchain fundraising, such as crypto airdrops and initial DEX offerings (IDOs).