Franklin Templeton, an asset manager, is venturing into the world of cryptocurrencies by considering a new fund specifically designed for institutional investors. This move signifies a shift away from just offering investments in Bitcoin (BTC) and Ether (ETH).
Reportedly, Franklin Templeton is exploring the possibility of launching a private fund that would give institutional investors exposure to various altcoins and the opportunity to earn staking rewards. While the specific altcoins that would make up the fund’s portfolio are not disclosed in the report, the asset manager has recently commended the growth of the Solana network.
In the first quarter of 2024, Solana’s spot decentralized exchange volume surged by 319% to $1.5 billion, according to data from Messari. This impressive growth has caught the attention of Franklin Templeton, which manages around $1.64 trillion in assets as of March 2024, making it one of the largest investment management firms globally.
Franklin Templeton has been actively involved in the cryptocurrency space, with projects like its spot Bitcoin exchange-traded fund (ETF) launched earlier this year. The company is also a proponent of a spot Ether ETF, which has received approval from the United States Securities and Exchange Commission (SEC) and is awaiting clearance to launch.
In a previous statement, the company expressed its enthusiasm for Ethereum (ETH) and its ecosystem, despite recent challenges. Franklin Templeton sees a promising future for Ethereum with strong forces driving its growth.
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 leverage a public blockchain for transactions and ownership records, with each share represented by the BENJI token.
The conversion process will be facilitated by Zero Hash, a crypto and stablecoin infrastructure platform. According to data from Dune Analytics, Franklin’s money market fund currently oversees $357 million in assets.
In the realm of blockchain fundraising, Franklin Templeton explores various alternatives to initial coin offerings (ICOs), including crypto airdrops, initial DEX offerings (IDOs), and more.