Franklin Templeton, an asset manager, is venturing into the world of cryptocurrency with a new fund tailored for institutional investors. This move expands their offerings beyond well-known cryptocurrencies like Bitcoin (BTC) and Ether (ETH).
As reported on June 6 by The Information, Franklin Templeton is exploring the creation of a private fund that will give institutional investors exposure to alternative coins, also known as altcoins. Sources familiar with the matter mentioned that the fund will also offer staking rewards.
While the specific altcoins that will be included in the fund are not disclosed in the report, Franklin Templeton has recently shown admiration for the growth of the Solana network. According to Messari, 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 approximately $1.64 trillion in assets under management as of March 2024, Franklin Templeton ranks among the largest investment management firms globally. The company has been actively involved in the crypto space, with its spot Bitcoin exchange-traded fund (ETF) being one of its notable projects launched in January.
Additionally, Franklin Templeton is a proponent of 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 agency to launch.
In a previous statement on X, the company expressed its optimism about Ethereum (ETH) and its ecosystem, despite recent challenges, foreseeing a promising future with strong positive trends propelling the Ethereum ecosystem forward.
In a separate announcement made on June 6, Franklin Templeton introduced a new feature for investors on its Benji Investments platform. Investors can now utilize 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 conduct transactions and record ownership on a public blockchain, with each share represented by the BENJI token. The conversion process will be facilitated by Zero Hash, a crypto and stablecoin infrastructure platform, as stated by the company.
According to Dune Analytics, Franklin’s money market fund currently oversees $357 million in assets.