Franklin Templeton, a prominent asset manager, is delving into the world of cryptocurrencies by considering the launch of a new crypto fund tailored for institutional investors. This move signals a shift from its current offerings which primarily focus on Bitcoin (BTC) and Ether (ETH).
As reported on June 6 by The Information, Franklin Templeton is contemplating the creation of a private fund that would provide institutional investors exposure to alternative coins, also known as altcoins. Additionally, the fund is expected to incorporate staking rewards as an added benefit. Although the specific altcoins that will make up the fund’s portfolio have not been disclosed, Franklin Templeton has been particularly impressed with the growth of the Solana network in 2024. Data from analytics firm Messari reveals that 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 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, boasting various funds including a spot Bitcoin exchange-traded fund (ETF) which was launched in January. Furthermore, Franklin Templeton is a strong advocate for a spot Ether ETF, which has recently received approval from the United States Securities and Exchange Commission (SEC) and is awaiting clearance for launch.
In a statement made on X, Franklin Templeton expressed its enthusiasm for Ethereum (ETH) and its ecosystem, emphasizing a positive outlook despite recent challenges. The company highlighted its belief in a promising future with significant growth potential for the Ethereum ecosystem.
On June 6, Franklin Templeton introduced a new feature for investors on its Benji Investments platform, allowing them to utilize 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 records, issues shares represented by 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 assets worth $357 million, as per data from Dune Analytics.
For those looking at alternative options to traditional ICOs for blockchain fundraising, Franklin Templeton’s diverse range of offerings, including crypto airdrops, IDOs, and more, presents exciting opportunities in the evolving landscape of digital assets.