Franklin Templeton Considers Launching New Crypto Fund Featuring Altcoins Could Altcoin Season Be on the Horizon
Franklin Templeton Explores New Cryptocurrency Fund
Reports suggest that Franklin Templeton is exploring the possibility of introducing a new cryptocurrency fund, aiming to expand its investment portfolio beyond the widely recognized bitcoin and ether. Sources familiar with the matter anticipate a potential surge in altcoin activity in the near future as the asset manager delves into alternative cryptocurrencies.
Franklin Templeton, a prominent asset management firm based in Silicon Valley with assets totaling $1.6 trillion, is rumored to be developing a private investment fund dedicated to cryptocurrencies, as reported by The Information. Targeting institutional investors, this fund would focus on investing in lesser-known cryptocurrencies apart from bitcoin and ether.
Joining a growing trend among traditional financial institutions, Franklin Templeton is venturing into the $2.7 trillion cryptocurrency market to offer investment opportunities in digital assets and tokenized assets to its clientele. Recent sources suggest that the firm is in talks with service providers as it gears up for the potential launch of an actively managed fund.
Similar to other crypto asset managers like Galaxy Digital Holdings and Grayscale Investments, Franklin Templeton’s proposed fund may invest in specific tokens and potentially offer staking rewards to investors. These rewards would allow investors to earn returns when the fund utilizes their assets to validate transactions on the blockchain.
Having entered the digital asset space in 2018, Franklin Templeton has initiated various blockchain and cryptocurrency projects over the years. CEO Jenny Johnson disclosed her ownership of popular cryptocurrencies, including bitcoin and ether, in a recent statement. The firm also launched a bitcoin exchange-traded fund (ETF) earlier this year in the U.S. and is preparing to introduce an ETF for ether, the second-largest cryptocurrency.
In a notable move, Franklin Templeton also launched a fund leveraging blockchain technology to represent U.S. government bonds via the Stellar network, preceding a similar initiative by BlackRock.
Investors are gearing up for the potential introduction of altcoin ETFs following the launch of the Ethereum ETF. This milestone paves the way for institutional investors to enter the cryptocurrency market, raising expectations for future ETFs focusing on Solana and Ripple Labs’ XRP.
At the Consensus 2024 Conference, Ripple CEO Brad Garlinghouse predicted the approval of additional cryptocurrency ETFs, citing recent developments in spot Bitcoin and Ethereum ETFs. He hinted at potential ETFs for Ripple’s XRP, Solana, and Cardano on the horizon.
Market experts like CNBC’s Brian Kelly and ARK Invest’s Cathie Wood have also weighed in on the trend, suggesting that Solana could be the next cryptocurrency to secure a spot ETF in the U.S. Wood emphasized that the approval of Ethereum ETFs underscores the growing significance of cryptocurrencies in the financial landscape.