Franklin Templeton Ventures into New Crypto Fund Featuring Altcoins Could Altcoin Season Be on the Horizon
Franklin Templeton is rumored to be exploring the creation of a new cryptocurrency fund that would expand its investment portfolio beyond the popular bitcoin and ether, as per sources familiar with the situation. With the asset manager delving into altcoins, there is optimism for a notable altcoin season in the near future.
Franklin Templeton Delves into Altcoin Investments
Reportedly, Franklin Templeton, a prominent U.S. asset management company headquartered in Silicon Valley with $1.6 trillion in assets, is contemplating the launch of a new cryptocurrency-focused fund, as reported by The Information. This fund would be a private investment opportunity targeted towards institutional investors and would concentrate on cryptocurrencies other than bitcoin and ether.
Franklin Templeton joins a cohort of traditional financial powerhouses venturing into the $2.7 trillion crypto market in a bid to offer crypto and tokenized asset investments to their clientele. Sources suggest that Franklin Templeton has been engaging with service providers as it gears up for a potential launch of an actively-managed fund.
In a similar vein, other crypto asset managers like Galaxy Digital Holdings and Grayscale Investments already oversee active funds that invest in specific tokens. Franklin’s proposed fund could potentially follow suit by investing in hand-picked tokens and possibly offering staking rewards, enabling investors to earn returns when the fund leverages their assets for validating transactions on the blockchain.
Reports indicate that Franklin Templeton first dipped its toes into digital assets back in 2018 and has since initiated various blockchain and cryptocurrency-related projects. Last year, Franklin Templeton’s CEO, Jenny Johnson, disclosed her ownership of several prominent cryptocurrencies, including bitcoin and ether.
Earlier this year, Franklin Templeton rolled out a bitcoin exchange-traded fund (ETF) in the U.S. and is gearing up for the launch of another ETF focusing on ether, the second-largest cryptocurrency. In 2021, they also introduced a fund utilizing blockchain technology to represent U.S. government bonds, leveraging the Stellar network, an initiative preceding a similar move by BlackRock.
Investors Gear Up for Altcoin ETFs
The introduction of the Ethereum ETF represents a noteworthy milestone in the crypto sphere, opening doors for institutional investors to enter the market and boosting prospects for forthcoming ETFs centered on Solana and Ripple Labs’ XRP.
During the Consensus 2024 Conference, Ripple’s CEO, Brad Garlinghouse, predicted the emergence of more cryptocurrency ETFs, citing the recent approvals of spot Bitcoin ETFs and Ethereum ETFs as precursors to ETFs for Ripple’s XRP, Solana, and Cardano.
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. Meanwhile, Cathie Wood, CEO of ARK Invest, echoed a similar sentiment, highlighting that the approval of Ethereum ETFs underscores the growing significance of crypto in financial markets.