Franklin Templeton Explores New Cryptocurrency Fund
Reports suggest that Franklin Templeton is contemplating the launch of a fresh cryptocurrency fund that would expand its investment portfolio beyond the popular bitcoin and ether, as per sources familiar with the situation. The asset management firm is delving into altcoins, raising expectations for a substantial altcoin season in the near future.

Franklin Templeton, a prominent U.S. asset management company headquartered in Silicon Valley with assets totaling $1.6 trillion, is reportedly gearing up to introduce a new fund specifically focused on cryptocurrencies, as reported by The Information. This fund, tailored for institutional investors, would be a private investment vehicle that looks to invest in cryptocurrencies other than bitcoin and ether.

Joining the league of traditional financial behemoths venturing into the $2.7 trillion crypto market, Franklin Templeton aims to offer investment opportunities in cryptocurrencies and tokenized assets to its clientele. Recent sources have hinted at Franklin Templeton engaging with service providers in anticipation of a potential launch of an actively managed fund.

In a parallel to other crypto asset managers like Galaxy Digital Holdings and Grayscale Investments, which already manage active funds targeting specific tokens, Franklin’s proposed new fund could potentially invest in selected tokens and offer staking rewards. This would enable investors to earn returns when the fund utilizes their assets to validate transactions on the blockchain.

Reports indicate that Franklin Templeton made its initial foray into digital assets back in 2018 and has since embarked on various blockchain and cryptocurrency-related projects. Last year, the CEO of Franklin Templeton, Jenny Johnson, disclosed her ownership of popular cryptocurrencies such as bitcoin and ether.

Earlier this year, Franklin Templeton initiated a bitcoin exchange-traded fund (ETF) in the U.S. and is set to launch another ETF for ether, the second-largest cryptocurrency. In 2021, they also rolled out a fund utilizing blockchain technology to represent U.S. government bonds on the Stellar network, preceding a similar move by BlackRock.

Investors Anticipate Altcoin ETFs
The introduction of the Ethereum ETF signifies a significant milestone in the crypto market, paving the way for institutional investors to enter the arena and increasing the likelihood of future ETFs for Solana and Ripple Labs’ XRP.

At the Consensus 2024 Conference, Ripple’s CEO, Brad Garlinghouse, predicted the advent of more cryptocurrency ETFs, pointing to the recent approvals of spot Bitcoin ETFs and Ethereum ETFs as precursors to ETFs for Ripple’s XRP, Solana, and Cardano.

Recently, 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. Echoing a similar sentiment, ARK Invest’s CEO, Cathie Wood, highlighted that the approval of Ethereum ETFs underscores the growing significance of crypto in the financial landscape.

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