Franklin Templeton, an asset manager, is venturing into the world of cryptocurrency by considering launching a new fund specifically designed for institutional investors. This move marks a shift from their existing offerings of Bitcoin (BTC) and Ether (ETH).
As reported on June 6 by The Information, Franklin Templeton is exploring the possibility of introducing a private fund that will give institutional investors exposure to alternative cryptocurrencies, also known as altcoins. The fund is also expected to offer staking rewards, according to sources familiar with the matter.
While the specific altcoins that will be included in the fund remain undisclosed, Franklin Templeton has recently commended the growth of the Solana network. Data from analytics firm Messari shows that in the first quarter of 2024, Solana’s decentralized exchange volume surged by 319% to $1.5 billion compared to the previous quarter.
With assets under management totaling around $1.64 trillion as of March 2024, Franklin Templeton ranks among the largest investment management firms globally. The company has been actively involved in the cryptocurrency space, with notable projects such as the spot Bitcoin exchange-traded fund (ETF) that was launched in January.
Furthermore, Franklin Templeton has been advocating for the approval of a spot Ether ETF by the United States Securities and Exchange Commission (SEC). The company expressed optimism about the future of Ethereum and its ecosystem, despite recent challenges faced by the cryptocurrency.
In a recent announcement on June 6, Franklin Templeton introduced a new feature on its Benji Investments platform. Investors can now use USD Coin (USDC) stablecoin to invest in Franklin OnChain U.S. Government Money Fund (FOBXX), a money market fund. This fund was the first U.S.-registered mutual fund to leverage public blockchain for transactions and ownership recording, with each share represented by the BENJI token.
The conversion process for using USDC to fund investments in the money market fund will be facilitated by Zero Hash, a crypto and stablecoin infrastructure platform, as stated by the company. Currently, Franklin’s money market fund manages assets worth $357 million, according to data from Dune Analytics.
In addition to their traditional offerings, Franklin Templeton is exploring innovative ways to engage with the cryptocurrency market, providing investors with opportunities to diversify their portfolios and explore new investment avenues beyond conventional methods.