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 well-known bitcoin and ether, according to sources familiar with the matter. As the asset manager explores altcoins, there is great hope of a significant altcoin season in the coming months.
Franklin Templeton Explores Altcoin Investments
Franklin Templeton, a major US asset management firm based in Silicon Valley with assets of $1.6 trillion, is reportedly planning to launch a new cryptocurrency-focused fund. according to L’Informazione. This fund would be a private investment vehicle, focused on institutional investors and would invest in cryptocurrencies other than the well-known bitcoin and ether.
Franklin Templeton is among several traditional financial giants that are moving into the $2.7 trillion cryptocurrency market, seeking to provide cryptocurrency investments and tokenized assets to their customers.
Recently, sources indicated that Franklin Templeton has been consulting with service providers as it prepares to potentially launch an actively managed fund.
Read also: Franklin Templeton starts the commission war by quoting a sponsor commission of 0.19%.
Other crypto asset managers such as Galaxy Digital Holdings and Grayscale Investments already run active funds that invest in specific tokens. Similarly, Franklin’s proposed new fund could invest in select tokens and could also provide staking rewards, offering investors returns when the fund uses its assets to validate transactions on the blockchain.
According to reports, the asset manager began its involvement with digital assets in 2018 and has since initiated several projects related to blockchain and cryptocurrencies.
Last year, Franklin Templeton CEO Jenny Johnson revealed that she owned several popular cryptocurrencies, including bitcoin and ether.
Earlier this year, Franklin Templeton started a bitcoin exchange-traded fund (ETF) in the United States and is also preparing to start 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, which existed before BlackRock did anything similar.
Investors Get Ready for Altcoin ETFs
The launch of the Ethereum ETF marks a significant milestone in the cryptocurrency market. It facilitates the entry of institutional investors into the cryptocurrency market and increases the possibilities of future ETFs for Solana and XRP from Ripple Labs.
At the Consensus Conference 2024, Brad Garlinghouse, CEO of Ripple, predicted the launch of more cryptocurrency ETFs. He cited the recent approvals of Bitcoin spot ETFs and Ethereum ETFs as indicators that Ripple’s XRP, Solana and Cardano ETFs are coming soon.
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 secure a spot ETF in the United States.
Cathie Wood, CEO of ARK Invest, shared a similar view, saying that the approval of Ethereum ETFs shows that cryptocurrencies have become a significant issue in elections.