Franklin Templeton Explores New Crypto Fund for Institutional Investors

Asset manager Franklin Templeton is considering the launch of a new cryptocurrency fund tailored for institutional investors, marking a strategic move to diversify its investment options beyond the well-known Bitcoin and Ether. As per a report from The Information dated June 6, Franklin Templeton is contemplating the introduction of a private fund targeting institutional investors seeking exposure to alternative coins (altcoins). The proposed fund is expected to incorporate staking rewards, providing additional incentives for investors. Although the report does not specify the specific altcoins that would form part of the fund's portfolio, Franklin Templeton recently commended the impressive growth of the Solana network in 2024.

The asset manager, renowned for managing approximately $1.64 trillion in assets as of March 2024, holds a prominent position among the largest investment management firms globally. Franklin Templeton's engagement in the cryptocurrency domain includes various funds, with its spot Bitcoin exchange-traded fund (ETF) launched earlier this year standing out as a notable project. Furthermore, the company has voiced its support for a spot Ether ETF, already sanctioned by the United States Securities and Exchange Commission (SEC) and now awaiting regulatory clearance for its launch.

On another front, Franklin Templeton announced a recent development on June 6, unveiling a new feature for investors on its Benji Investments platform. The company has enabled investors to leverage the USD Coin (USDC) stablecoin for financing investments in its money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX). This fund holds the distinction of being the first U.S.-registered mutual fund to execute transactions and record ownership through a public blockchain, where each share is represented by the BENJI token.

The conversion process will be facilitated by Zero Hash, a crypto and stablecoin infrastructure platform, as confirmed by the company in an official statement. According to data from Dune Analytics, Franklin's money market fund currently manages assets totaling $357 million.