Franklin Templeton Delving into New Crypto Fund Featuring Altcoins Could Altcoin Season Be on the Horizon
Franklin Templeton is reportedly exploring the launch of a new cryptocurrency fund to expand its investment portfolio beyond the popular bitcoin and ether, as per sources familiar with the matter. The asset manager’s venture into altcoins hints at a potential surge in altcoin activity in the near future.
Franklin Templeton Delves into Altcoin Investments
Franklin Templeton, a prominent asset management firm based in Silicon Valley with $1.6 trillion in assets, is allegedly gearing up to introduce a new cryptocurrency-focused fund, as reported by The Information. This private fund is aimed at institutional investors and will target cryptocurrencies other than bitcoin and ether.
Joining the league of traditional financial giants venturing into the $2.7 trillion crypto market, Franklin Templeton aims to offer its clients investment opportunities in cryptocurrencies and tokenized assets. Recent reports suggest that the firm has been in discussions with service providers, hinting at a potential launch of an actively managed fund.
Further, other crypto asset managers like Galaxy Digital Holdings and Grayscale Investments already manage active funds that specialize in specific tokens. Franklin Templeton’s proposed fund might follow suit by investing in selected tokens and potentially offering staking rewards, allowing investors to earn returns when their assets are used to validate transactions on the blockchain.
Sources reveal that Franklin Templeton dipped its toes into the world of digital assets back in 2018 and has since initiated several projects related to blockchain and cryptocurrencies. CEO Jenny Johnson disclosed last year that she holds various popular cryptocurrencies, including bitcoin and ether.
Earlier in the year, Franklin Templeton introduced a bitcoin exchange-traded fund (ETF) in the U.S. and is gearing up to launch another ETF for ether, the second-largest cryptocurrency. In 2021, the firm also rolled out a fund leveraging blockchain technology to represent U.S. government bonds, utilizing the Stellar network before a similar move by BlackRock.
Investors Anticipate Altcoin ETFs
The debut of the Ethereum ETF signifies a significant milestone for the crypto market, paving the way for institutional investors to enter the space and raising prospects for future ETFs centered around Solana and Ripple Labs’ XRP.
During the Consensus 2024 Conference, Ripple CEO Brad Garlinghouse predicted the launch of more cryptocurrency ETFs, pointing to recent approvals of spot Bitcoin ETFs and Ethereum ETFs as signals that ETFs for XRP, Solana, and Cardano could be next in line.
Recently, CNBC’s ‘Fast Money’ trader Brian Kelly sparked discussions by suggesting that Solana could be the next cryptocurrency to secure a spot ETF in the U.S. ARK Invest CEO Cathie Wood echoed a similar sentiment, noting that the approval of Ethereum ETFs underscores the growing importance of crypto in financial markets.
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Altcoins
Bitcoin
Bitcoin ETF
Cryptocurrency
Ethereum