Renowned asset management firm, Franklin Templeton, is venturing into the world of alternative cryptocurrencies (altcoins). The mutual fund giant plans to create a private fund catering to institutional investors interested in the growing altcoin landscape.
Franklin Templeton is known for having its toes dipped in the crypto universe, and now it’s reportedly looking to broaden its scope beyond Bitcoin and Ether. If successful, the new altcoin-focused fund will offer not only exposure to digital assets but also staking rewards, according to insiders familiar with the situation.
While the specific altcoins to be included in the fund haven’t been disclosed, Franklin Templeton has lately shown admiration for the Solana network. This admiration comes on the heels of a 319% surge in Solana’s decentralized exchange volume in Q1 2024, hitting $1.5 billion, according to data from analytics firm Messari.
Boasting total assets under management of about $1.64 trillion as of March 2024, Franklin Templeton is regarded globally as one of the biggest investment management companies. Its relevance in the crypto industry is apparent, with its successful launch of a spot Bitcoin exchange-traded fund (ETF) early this year.
Sealing its place as a significant player in the digital assets sector, Franklin Templeton also backed a spot Ether ETF, which recently received the nod from the United States Securities and Exchange Commission (SEC). The ETF awaits final authorization from the SEC to commence operation.
Expanding its digital currency ventures, Franklin Templeton revealed that investors on its Benji Investments platform now have the option of funding investments in its Franklin OnChain U.S. Government Money Fund (FOBXX) with the USD Coin stablecoin. The FOBXX was the first U.S.-registered mutual fund to adopt public blockchain usage in the processing of transactions and recording of ownership. The conversion process will be managed by the crypto-centric stablecoin infrastructure platform, Zero Hash, the firm confirmed.