Franklin Templeton, an asset manager, is currently investigating the development of a new crypto fund for institutional investors, which would be based on altcoins.
The Information reported on June 6 that the mutual fund is contemplating the establishment of a private fund to introduce institutional investors to altcoins. The report cites sources familiar with the matter and stated that the fund would also provide staking rewards.
The report does not specify the altcoins comprising the fund’s portfolio. However, the asset manager has recently commended the Solana network’s expansion in 2024.
Solana’s spot decentralized exchange volume in the first quarter of 2024 increased by 319% to $1.5 billion from the previous quarter, according to analytics firm Messari.
As of March 2024, Franklin Templeton oversees assets totaling approximately $1.64 trillion. This figure ranks the asset manager among the major investment management firms globally.
The organization is actively managing numerous funds in the cryptocurrency sector. Launched in January, its spot Bitcoin exchange-traded fund (ETF) is one of its most popular initiatives.
Franklin is also a proponent of a spot Ether ETF recently approved by the United States Securities and Exchange Commission (SEC). Currently, the ETF is anticipating the agency’s approval to commence operations.
“We are enthusiastic about the ETH and its ecosystem.” The company previously stated in a post on X that it sees a bright future with many strong tailwinds to drive the Ethereum ecosystem forward despite the midlife crisis it has recently experienced.
USDC in money market funds
Franklin Templeton introduced a new feature for investors on its Benji Investments platform on June 6. The Franklin OnChain U.S. Government Money Fund (FOBXX) is now accessible to investors who wish to fund their investments using USD Coin (USDC) stablecoin.
The fund was the first U.S.-registered mutual fund to utilize a public blockchain to record ownership and conduct transactions. The BENJI token is the symbol for each stake of the fund.
The company stated that the crypto and stablecoin infrastructure platform Zero Hash will facilitate the conversion.
Franklin’s money market fund currently oversees $357 million in assets, as per Dune Analytics.
