Altcoins
Franklin Templeton Explores New Crypto Fund with Altcoins: Is Altcoin Season Coming?
Franklin Templeton is reportedly considering introducing a new cryptocurrency fund. This fund would diversify its investments beyond the famous bitcoin and ether, according to sources close to the matter. As the asset manager explores altcoins, there are high hopes for a significant altcoin season in the coming months.
Franklin Templeton Explores Altcoin Investing
Franklin Templeton, a major US asset management firm based in Silicon Valley with $1.6 trillion in assets, is reportedly considering launching a new fund focused on cryptocurrencies, according to The Information. This fund would be a private investment vehicle, focused on institutional investors and would invest in cryptocurrencies other than the famous bitcoin and ether.
Franklin Templeton is among several traditional financial giants jumping into the $2.7 trillion crypto market, looking to offer their clients investments in cryptocurrencies and tokenized assets.
Recently, sources indicated that Franklin Templeton had been consulting with service providers as it prepared to potentially launch an actively managed fund.
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Other crypto asset managers like Galaxy Digital Holdings and Grayscale Investments already run active funds that invest in specific tokens. Franklin’s proposed new fund could also invest in select tokens and could also offer staking rewards, providing investors with returns when the fund uses their assets to validate transactions on the blockchain.
The asset manager reportedly began getting involved in digital assets in 2018 and has since launched several blockchain and cryptocurrency-related projects.
Last year, Franklin Templeton CEO Jenny Johnson revealed that she owned several popular cryptocurrencies, including bitcoin and ether.
Earlier this year, Franklin Templeton launched a Bitcoin exchange-traded fund (ETF) in the United States and is also preparing to launch another ETF for ether, which is the second-largest cryptocurrency. In 2021, they also launched a fund that uses blockchain technology to represent US government bonds, using the Stellar network, before BlackRock did something similar.
Investors prepare for Altcoin ETFs
The launch of the Ethereum ETF marks a significant milestone in the crypto market. It makes it easier for institutional investors to enter the crypto market and improves the chances of future XRP ETFs from Solana and Ripple Labs.
At the Consensus 2024 conference, Brad Garlinghouse, CEO of Ripple, predicted the launch of more cryptocurrency ETFs. He cited the recent approvals of Bitcoin and Ethereum spot ETFs as indicators of the upcoming arrival of ETFs for Ripple’s XRP, Solana and Cardano.
Recently, Brian Kelly, a trader on CNBC’s “Fast Money,” started a conversation on X by proposing that Solana could be the next cryptocurrency to get a spot ETF in the United States.
Cathie Wood, CEO of ARK Invest, shared a similar view, stating that the approval of Ethereum ETFs demonstrates that crypto has become an important issue in elections.