Franklin Templeton, a Wall Street asset manager with assets totaling $1.64 trillion, is considering launching a new private fund that will focus on investing in altcoins other than Bitcoin and Ethereum. The fund will target institutional investors and include tokens such as Solana, XRP, Shiba Inu, and Cardano. The company has been involved in the crypto ecosystem since 2018 and recently introduced a spot Bitcoin exchange-traded fund (ETF) along with applying for a similar offering for Ethereum. Franklin Templeton was the first issuer to announce sponsor fees for its spot ETH ETF.
Venturing into altcoins beyond the top two major crypto assets, Franklin Templeton is showing comfort with tokens that the SEC has considered unregistered securities. While the report does not specify which altcoins will be included in the new fund, the company has acknowledged the growth of the Solana network and praised Anatoly Yakovenko’s vision for decentralized blockchains. The move towards altcoins comes after the SEC approved regulatory filings for spot Ether ETF applications, despite Ethereum being classified internally as an unregistered security for over a year.
Staking rewards were not initially included in the proposed Ether funds that received regulatory approval from the SEC last month. However, Franklin Templeton is considering offering investors staking rewards with the new altcoin fund. While the spot BTC ETF offered by Franklin Templeton has not been as successful as those offered by BlackRock and Fidelity, the company is focused on expanding its crypto assets business globally outside the US.
The potential launch of a new private fund focused on altcoins signifies Franklin Templeton’s continued interest and confidence in the cryptocurrency market. By targeting institutional investors and expanding beyond Bitcoin and Ethereum, the asset management firm is diversifying its crypto portfolio and embracing tokens that have not been traditionally favored by regulators. The approval of regulatory filings related to Ether ETF applications by the SEC has provided further support for Franklin Templeton’s cryptocurrency initiatives.
The decision to include staking rewards in the new altcoin fund demonstrates Franklin Templeton’s commitment to offering attractive investment opportunities in the cryptocurrency space. Despite facing challenges with its spot BTC ETF, the company remains determined to grow its crypto assets business globally. By considering new avenues for investment and staying ahead of regulatory developments, Franklin Templeton is positioning itself as a key player in the evolving cryptocurrency market.
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