Franklin Templeton, a leading asset management firm with $1.6 trillion under its management, is exploring the potential benefits of investing in altcoins beyond the popular Bitcoin (BTC) and Ethereum (ETH).
Insider reports suggest that the Silicon Valley-based company is considering the launch of a new cryptocurrency-focused investment fund. This fund is geared towards institutional investors and is expected to include a diverse range of cryptocurrencies other than BTC and ETH.
Franklin Templeton is among several traditional financial giants making their way into the virtual asset industry, offering crypto investments and tokenized assets to their clients.
In January, the firm, along with BlackRock and Fidelity, introduced a Bitcoin spot exchange-traded fund (ETF) in the U.S., which has already amassed over $350 million in assets. Building on this success, Franklin Templeton plans to launch a similar product for Ethereum.
If the proposed altcoin fund materializes, it may incorporate staking rewards, a feature not present in the recently approved spot Ethereum ETFs.
In 2021, Franklin Templeton made waves by introducing a tokenized U.S. government bond fund on the Stellar (XLM) network, beating out rivals like BlackRock with similar initiatives.
The potential expansion of Franklin Templeton into the altcoin market has raised optimism among industry analysts about the sector’s growth potential.
While the specific altcoins targeted by the fund remain undisclosed, market observers are hopeful about the prospects of large-cap tokens like Solana (SOL) and XRP. Additionally, meme coins like Shiba Inu are also seen as potential beneficiaries of Franklin Templeton’s move due to their popularity among both retail and institutional investors.
There is growing speculation within the crypto community about SOL and XRP being potential assets for the next crypto ETF post Ethereum.
Reports suggest that venture capital firms like Symbolic Capital Partners and SCP Ventures have already integrated Shiba Inu into their digital asset portfolios, highlighting the institutional interest in these alternative cryptocurrencies.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The opinions expressed are solely those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic holds no responsibility for financial losses.