Franklin Templeton is reportedly considering the introduction of a new cryptocurrency fund. This fund would diversify its investments beyond the well-known bitcoin and ether, according to sources familiar with the matter. As the asset manager explores altcoins, there’s a high hope of a significant altcoin season in the coming months.
Franklin Templeton, a major U.S. asset management firm based in Silicon Valley with $1.6 trillion in assets, is reportedly planning to launch a new fund focused on cryptocurrencies, according to The Information. This fund would be a private investment vehicle, focusing on institutional investors and it would invest in cryptocurrencies other than the well-known bitcoin and ether.
Franklin Templeton is among several traditional financial giants that are moving into the $2.7 trillion crypto market, seeking to provide investments in cryptocurrencies and tokenized assets to their clients.
Recently, sources have indicated that Franklin Templeton has been consulting with service providers as it prepares to potentially launch an actively-managed fund.
Other crypto asset managers like Galaxy Digital Holdings and Grayscale Investments already manage active funds that invest in specific tokens. Franklin’s proposed new fund could similarly invest in selected tokens and might also provide staking rewards, giving investors returns when the fund uses their assets to validate transactions on the blockchain.
According to reports, the asset manager began its involvement with digital assets in 2018 and has since initiated several blockchain and cryptocurrency-related projects.
Last year, Franklin Templeton’s CEO, Jenny Johnson, revealed that she owned several popular cryptocurrencies, including bitcoin and ether.
Earlier this year, Franklin Templeton started a bitcoin exchange-traded fund (ETF) in the U.S. and also prepares to start another ETF for ether, which is the second-biggest cryptocurrency. In 2021, they also launched a fund that uses blockchain technology to represent U.S. government bonds, using the Stellar network, which was before BlackRock did something similar.
The launch of the Ethereum ETF marks a significant milestone in the crypto market. It facilitates the entry of institutional investors into the crypto market and enhances the chances of future ETFs for Solana and Ripple Labs’ XRP.
At the Consensus 2024 Conference, Brad Garlinghouse, CEO of Ripple, forecasted the launch of more cryptocurrency ETFs. He cited the recent approvals of spot Bitcoin ETFs and Ethereum ETFs as indicators that ETFs for Ripple’s XRP, Solana, and Cardano are coming next.
Recently, Brian Kelly, a trader on CNBC’s ‘Fast Money,’ initiated a conversation on X by proposing that Solana might be the next cryptocurrency to secure a spot ETF in the United States.
Cathie Wood, CEO of ARK Invest, shared a related view, stating that the approval of Ethereum ETFs demonstrates that crypto has become a significant issue in elections.
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