Franklin Templeton, an asset manager, is venturing into the world of cryptocurrency by considering a new fund tailored for institutional investors. This move represents 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 creation of a private fund that would introduce institutional investors to alternative coins, also known as altcoins. This fund is expected to provide staking rewards, as disclosed by sources familiar with the matter.
Although the report does not specify which altcoins will be included in the fund, Franklin Templeton has recently commended the growth of the Solana network in 2024. 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 approximately $1.64 trillion in assets under management as of March 2024, Franklin Templeton is ranked among the largest global investment management firms. The company has a strong presence in the crypto space, offering various funds including a spot Bitcoin exchange-traded fund (ETF) launched earlier this year.
Additionally, Franklin Templeton is a supporter of a spot Ether ETF, which recently received approval from the United States Securities and Exchange Commission (SEC). The ETF is awaiting clearance from the agency before it can be launched.
In a previous statement on X, the company expressed its enthusiasm for Ethereum (ETH) and its ecosystem, foreseeing a positive future despite recent challenges.
Recently, on June 6, Franklin Templeton introduced a new feature on its Benji Investments platform, allowing investors to 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 utilize a public blockchain for processing transactions and recording ownership, with each share represented by the BENJI token.
The conversion process will be facilitated by Zero Hash, a crypto and stablecoin infrastructure platform, as stated by the company. According to data from Dune Analytics, Franklin’s money market fund currently manages $357 million in assets.
In conclusion, Franklin Templeton’s foray into the crypto world showcases its commitment to innovation and expanding investment opportunities for its clients.