Franklin Templeton is venturing into the world of cryptocurrency by considering a new fund tailored for institutional investors, expanding its current offerings beyond Bitcoin (BTC) and Ether (ETH).
As reported on June 6 by The Information, the investment firm is contemplating the launch of a private fund that would provide exposure to alternative coins, or altcoins, for institutional investors. Sources familiar with the matter also mentioned that the fund would include staking rewards as part of its offerings.
Although the report does not specify which altcoins would be included in the fund, Franklin Templeton has recently shown admiration for 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 from the previous quarter.
With approximately $1.64 trillion in assets under management as of March 2024, Franklin Templeton is among the largest investment management firms globally. The company has been actively engaged in the crypto space, with notable projects such as its spot Bitcoin exchange-traded fund (ETF) that was launched in January.
Additionally, Franklin Templeton has been a strong supporter of 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 Ethereum and its ecosystem, highlighting its potential for growth despite recent challenges.
In another development on June 6, Franklin Templeton announced a new feature on its Benji Investments platform that allows investors to use the USD Coin (USDC) stablecoin to fund investments in its money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX).
Notably, the 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 the crypto and stablecoin infrastructure platform Zero Hash.
According to data from Dune Analytics, Franklin’s money market fund currently manages $357 million in assets.
For those looking into alternative fundraising options for blockchain projects, the magazine suggests exploring crypto airdrops, initial DEX offerings (IDOs), and more as viable alternatives to traditional ICOs.