Altcoins

Franklin Templeton Reportedly Considering New Altcoin Crypto Fund

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Franklin Templeton is one of the world’s largest asset management companies. FranklinTempletonTV YouTube | The Inspiration Behind Our Brand, Benjamin Franklin YouTube Channel FranklinTempletonTV/Screenshot

KEY POINTS

  • New report revealed asset manager plans to stake rewards for altcoin fund
  • Franklin Templeton announced a new feature on Thursday that allows Benji investors to use USDC for FOBXX funding.
  • The asset management titan is a BTC spot ETF issuer and has applied for ETH spot ETFs

Asset management giant Franklin Templeton is reportedly exploring the possibility of launching a new digital asset fund, and this time the fund will invest beyond the largest cryptocurrencies, Bitcoin and Ether.

The trillion-dollar asset manager is exploring the possible creation of a digital asset fund that could offer institutional investors exposure to altcoins, The Information reported Thursday, citing people with direct knowledge of the matter. Altcoins are alternative tokens to Bitcoin, the world’s first decentralized crypto and also the largest digital asset by market value.

The report further states that the altcoin-focused fund will offer staking rewards, but it is unclear which specific altcoins the asset manager is considering for the fund. On the other hand, it has made several moves around the Solana network and the US Dollar Coin (USDC).

He praised the Solana blockchain for its impressive activity during the fourth quarter of 2023, saying he sees the network as “Anataloy’s vision of a single atomic state machine as a powerful use case for decentralized blockchains.” .

Just on Thursday, the financial titan unveiled a new feature for investors on its Benji Investments platform that will allow them to use the USDC stablecoin to fund investments on Franklin OnChain US Government Money Fund (FOBXX), which is the first registered mutual fund in the United States to record and process transactions via a public blockchain.

Franklin Templeton has approximately $1.6 trillion in assets under management (AUM) and has been in the crypto space for several years. It was among the issuers that launched a BTC spot exchange-traded fund (ETF) in January and also applied for an Ether (ETH) spot ETF.

The asset management giant has been in the financial industry for around 77 years and recently Recognized Bitcoin Ordinals for their role in driving engagement around the Bitcoin community.

News of Franklin Templeton’s rumored plans for an altcoin fund comes at a critical time in the cryptocurrency sector following the 19b-4 approvals of spot Ether ETFs late last month. Many in the crypto industry believe these approvals are a catalyst for bigger things in this booming industry.

The San Mateo-based multinational company was among at least five Ethereum ETF applicants that submitted modified repositories to the US Securities and Exchange Commission (SEC) after the Wall Street regulator issued comments on the fund proposals.



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