Franklin Templeton, an asset manager, is looking into launching a new cryptocurrency fund specifically for institutional investors. This move is part of the company’s strategy to expand its offerings beyond just Bitcoin (BTC) and Ether (ETH).
As reported on June 6 by The Information, Franklin Templeton is considering creating a private fund that would give institutional investors exposure to alternative coins, also known as altcoins. The fund is also expected to provide staking rewards, according to sources familiar with the matter.
While the report does not specify which altcoins will be included in the fund, Franklin Templeton has recently shown appreciation for the growth of the Solana network in 2024. Analytics firm Messari reported that in the first quarter of 2024, Solana’s spot decentralized exchange volume surged by 319% to $1.5 billion from the previous quarter.
With assets under management totaling around $1.64 trillion as of March 2024, Franklin Templeton is among the largest investment management firms globally. The company has been actively involved in the cryptocurrency space, offering various funds. One of its notable projects is a spot Bitcoin exchange-traded fund (ETF) launched in January.
Franklin Templeton is also a supporter of a spot Ether ETF, which was recently approved by the United States Securities and Exchange Commission (SEC) and is awaiting final clearance to launch. The company expressed its enthusiasm for Ethereum and its ecosystem, stating that despite recent challenges, they see a promising future for the Ethereum ecosystem.
In another development on June 6, Franklin Templeton introduced a new feature on its Benji Investments platform. Investors can now use USD Coin (USDC) stablecoin to fund investments 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 utilize 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 a statement from the company. Currently, Franklin’s money market fund manages assets worth $357 million, according to data from Dune Analytics.
In addition to these developments, Franklin Templeton has been exploring alternative options for blockchain fundraising, including crypto airdrops and initial DEX offerings (IDOs).