Franklin Templeton, a renowned asset manager, is venturing into the world of cryptocurrencies by considering the launch of a new crypto fund specifically designed for institutional investors. This move marks a significant expansion of their current offerings, which previously only included Bitcoin (BTC) and Ether (ETH).
As per a report dated June 6 from The Information, the mutual fund is contemplating the creation of a private fund that would give institutional investors exposure to alternative cryptocurrencies, also known as altcoins. The fund is expected to provide staking rewards as an added incentive, according to sources familiar with the matter.
Although the report did not specify which altcoins would be included in the fund’s portfolio, Franklin Templeton has recently expressed admiration for the impressive growth of the Solana network in 2024. According to data from analytics firm Messari, Solana’s spot decentralized exchange volume surged by a remarkable 319% to $1.5 billion in the first quarter of 2024, compared to the previous quarter.
With assets under management totaling approximately $1.64 trillion as of March 2024, Franklin Templeton stands as one of the largest investment management firms globally. The company has been actively involved in the cryptocurrency space, offering various funds to cater to the growing demand. Notably, one of their most popular projects is the spot Bitcoin exchange-traded fund (ETF) that was launched in January.
Moreover, Franklin Templeton has been advocating for a spot Ether ETF, which has recently received approval from the United States Securities and Exchange Commission (SEC). The ETF is currently awaiting final clearance from the regulatory agency before it can be launched.
In a statement posted on X, the company expressed their enthusiasm for Ethereum (ETH) and its ecosystem, highlighting the positive outlook despite recent challenges. They believe in a promising future with strong momentum driving the Ethereum ecosystem forward.
In another development on June 6, Franklin Templeton introduced a new feature on its Benji Investments platform, allowing investors to utilize the USD Coin (USDC) stablecoin to fund investments in their money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX). This fund was the first of its kind to leverage public blockchain technology 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 announced by the company. According to data from Dune Analytics, Franklin’s money market fund currently manages assets worth $357 million.
In conclusion, Franklin Templeton’s foray into the crypto space reflects a strategic move to cater to institutional investors’ growing interest in digital assets. Their innovative approach and commitment to exploring new opportunities in the cryptocurrency market position them as a key player in the evolving financial landscape.