Franklin Templeton, an asset manager, is venturing into the world of cryptocurrencies by considering a new fund tailored for institutional investors. This move represents a shift from the traditional Bitcoin (BTC) and Ether (ETH) offerings.
As reported on June 6 by The Information, Franklin Templeton is exploring the possibility of launching a private fund that would provide exposure to alternative coins, or altcoins, to institutional investors. The fund is also expected to offer staking rewards, as per sources familiar with the matter.
While the report does not specify which altcoins would be included in the fund’s portfolio, Franklin Templeton has recently commended the growth of the Solana network. According to analytics firm Messari, 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 approximately $1.64 trillion in assets under management 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 space with various funds, including a popular spot Bitcoin exchange-traded fund (ETF) launched in January. Additionally, Franklin Templeton has been advocating for a spot Ether ETF, which has 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 optimism about Ethereum (ETH) and its ecosystem, despite recent challenges, foreseeing a promising future with significant growth opportunities.
On June 6, Franklin Templeton introduced a new feature on its Benji Investments platform, allowing 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 a public blockchain for transactions and ownership recording, represents shares through the BENJI token.
The conversion process will be facilitated by Zero Hash, a crypto and stablecoin infrastructure platform, according to the company’s statement. Currently, Franklin’s money market fund manages $357 million in assets, as reported by Dune Analytics.
In conclusion, Franklin Templeton’s foray into cryptocurrencies and blockchain technology showcases its commitment to innovation and catering to the evolving needs of institutional investors.