Asset management firm Franklin Templeton is venturing into the world of cryptocurrency with a new fund tailored for institutional investors, expanding its offerings beyond the popular Bitcoin (BTC) and Ether (ETH).
As reported on June 6 by The Information, Franklin Templeton is contemplating the launch of a private fund aimed at introducing institutional investors to alternative coins (altcoins). The fund is also expected to provide staking rewards, according to sources familiar with the matter cited in the report.
Although the report does not specify which altcoins will be included in the fund’s portfolio, Franklin Templeton has recently expressed admiration for the growth of the Solana network. Analytics from Messari revealed that in the first quarter of 2024, Solana’s spot decentralized exchange volume surged by 319% to $1.5 billion compared to the previous quarter.
With assets under management totaling approximately $1.64 trillion as of March 2024, Franklin Templeton ranks among the largest investment management firms globally.
The company has been actively involved in the crypto space, offering various funds to investors. One of its flagship projects is the spot Bitcoin exchange-traded fund (ETF) launched in January. Additionally, Franklin Templeton is a strong advocate for a spot Ether ETF, which has recently received approval from the United States Securities and Exchange Commission (SEC) and is awaiting clearance for launch.
In a previous statement on X, the company expressed its enthusiasm for Ethereum (ETH) and its ecosystem, anticipating a promising future despite recent challenges.
On June 6, Franklin Templeton introduced a new feature on its Benji Investments platform, enabling investors to utilize the 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, represents each share with the BENJI token.
The USDC conversions for the money market fund will be facilitated by the crypto and stablecoin infrastructure platform Zero Hash, as announced by the company.
According to data from Dune Analytics, Franklin’s money market fund currently manages assets worth $357 million.
Looking ahead, as blockchain technology continues to evolve, there are several alternatives to traditional Initial Coin Offerings (ICOs) for blockchain fundraising, including crypto airdrops, Initial DEX Offerings (IDOs), and more.