Asset manager Franklin Templeton is venturing into the world of cryptocurrencies with a new offering tailored for institutional investors. This move marks a significant expansion beyond the realm of 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 providing institutional investors exposure to a variety of altcoins. Sources familiar with the matter shared that the fund would also incorporate staking rewards as part of its investment strategy.
While specific details about the altcoins included in the fund remain undisclosed, Franklin Templeton has recently shown appreciation for the growth of the Solana network. Analytics from Messari revealed that in the first quarter of 2024, Solana’s decentralized exchange volume surged by an impressive 319% to reach $1.5 billion.
With assets under management totaling approximately $1.64 trillion as of March 2024, Franklin Templeton stands as one of the largest investment management firms on a global scale.
The company has been actively engaged in the cryptocurrency space, offering various funds to investors. Notably, Franklin Templeton launched a spot Bitcoin exchange-traded fund (ETF) in January, which has garnered significant interest. Additionally, the company is a strong advocate for a spot Ether ETF, which recently received approval from the United States Securities and Exchange Commission (SEC) and is awaiting clearance for launch.
In a previous statement, Franklin Templeton expressed enthusiasm for Ethereum (ETH) and its ecosystem, highlighting its potential for growth despite recent challenges.
On June 6, Franklin Templeton introduced a new feature for investors on its Benji Investments platform. Investors can now utilize the USD Coin (USDC) stablecoin to fund investments in the Franklin OnChain U.S. Government Money Fund (FOBXX), marking a significant step towards integrating cryptocurrencies into traditional investment vehicles.
The Franklin OnChain U.S. Government Money Fund was the first U.S.-registered mutual fund to leverage public blockchain technology 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 manages assets worth $357 million, indicating a growing interest in cryptocurrency investments within the traditional finance sector.