Franklin Templeton Ventures into New Crypto Fund Featuring Altcoins Could Altcoin Season Be on the Horizon
Franklin Templeton Explores New Cryptocurrency Fund
Reports suggest that Franklin Templeton is contemplating the launch of a fresh cryptocurrency fund. Sources familiar with the matter reveal that this fund aims to diversify investments beyond the well-known bitcoin and ether. As the asset manager delves into altcoins, there is a growing anticipation of a substantial altcoin season in the near future.
Franklin Templeton, a prominent U.S. asset management firm headquartered in Silicon Valley with assets totaling $1.6 trillion, is rumored to be in the process of developing a new fund dedicated to cryptocurrencies, as reported by The Information. This private investment vehicle is expected to cater to institutional investors and focus on investing in cryptocurrencies other than bitcoin and ether.
Joining the ranks of several traditional financial powerhouses venturing into the $2.7 trillion crypto market, Franklin Templeton is looking to offer investments in cryptocurrencies and tokenized assets to its clientele. Recent sources suggest that the asset manager has been in discussions with service providers as it gears up to potentially introduce an actively managed fund.
Galaxy Digital Holdings and Grayscale Investments are among the other crypto asset managers already overseeing active funds that invest in specific tokens. Franklin’s proposed new fund may follow suit by investing in selected tokens and potentially offering staking rewards, allowing investors to earn returns when the fund utilizes their assets to validate transactions on the blockchain.
Reports indicate that Franklin Templeton began its foray into digital assets back in 2018 and has since embarked on various blockchain and cryptocurrency-related initiatives. CEO Jenny Johnson disclosed last year that she holds a portfolio of popular cryptocurrencies, including bitcoin and ether.
Earlier this year, Franklin Templeton launched a bitcoin exchange-traded fund (ETF) in the U.S. and is also gearing up to introduce another ETF for ether, the second-largest cryptocurrency. In 2021, the firm also unveiled a fund leveraging blockchain technology to represent U.S. government bonds through the Stellar network, a move that preceded a similar initiative by BlackRock.
Investors Brace for Altcoin ETFs
The introduction of an Ethereum ETF marks a significant milestone in the crypto market. It paves the way for institutional investors to enter the crypto space and raises the likelihood of future ETFs for Solana and Ripple Labs’ XRP.
At the Consensus 2024 Conference, Ripple’s CEO Brad Garlinghouse predicted the emergence of more cryptocurrency ETFs. He pointed to the recent approvals of spot Bitcoin ETFs and Ethereum ETFs as indicators that ETFs for XRP, Solana, and Cardano could be next in line.
Brian Kelly, a trader on CNBC’s ‘Fast Money,’ sparked discussions by suggesting that Solana could be the next cryptocurrency to secure a spot ETF in the U.S. Cathie Wood, CEO of ARK Invest, echoed a similar sentiment, noting that the approval of Ethereum ETFs underscores the growing significance of crypto in the financial landscape.
Tags: Altcoins, Bitcoin, Bitcoin ETF, Cryptocurrency, Ethereum