Franklin Templeton to Launch a New Altcoin-based Crypto Fund

Franklin Templeton is working on a private fund directed towards institutional investors. According to the report, the fund is based on altcoins. The firm has indicated that the fund will be introduced as a way to expand Bitcoin and Ethereum offerings. A 6th June report published by The Information has revealed particulars about a new mutual fund.

Altcoin-focused Crypto Fund for Institutional Investors

This private fund will expose institutional investors to purchase altcoins. The fund will offer staking rewards as per the report. At the same time, the report has also cited various sources on the subject.

This report has indicated that the fund manager will set up the new fund as a basket of multiple altcoins. However, the details about the specifications or ratios of the altcoins are not yet publicized.

Franklin Templeton recently commended the growth of the Solana network. As per statistics from Messari, Solana’s decentralized trading volume underwent a 319% increase reaching $1.5 billion in comparison to the last quarter.

The asset management firm has an approximate $1.64 trillion in AUM as reported in March. In this manner, Franklin Templeton has become one of the biggest asset management firms across the globe.

Franklin Templeton as a Spot ETF Issuer

It is important to note that Franklin Templeton is also one of the issuers of the Ethereum spot ETF application that has received approval from the SEC recently. At the time, the ETF is on its way to gain additional approvals from the regulator to make a listing.

The firm posted on social media that it is looking forward to working with the Ethereum ecosystem. The platform further projected a strong push that has the potential to propel Ethereum.

At the same time, the platform announced a new service on Benji Investments. This service enables Franklin Templeton’s customers to invest their USDC reserves in the local money market fund called FOBXX.

This investment vehicle is the first registered US-based mutual fund with the ability to make transactions and record propriety on a public blockchain network. This blockchain also issues a security token that is known as a BENJI token.

As per the firm, investors may be able to purchase BENJI in exchange for crypto and stablecoins using Zero Hash. It is important to note that Zero Hash is not a SEC or FINRA-registered platform. It does not offer security or custodian services for securities or security tokens.

Dune Analytics reports that Franklin’s money market fund is currently holding $357 million in AUM. In April, the asset management firm revealed that institutional investors of BENJI token can now transfer shares with other investors on a peer-to-peer basis using a public blockchain.

Franklin Templeton’s Projection on ECB Interest Rate Policy

An article published in Beyond Bulls and Bears reports that Franklin Templeton’s Head of European Fixed Income, David Zahnn, has noticed that the ECB is set to cut interest rates by 0.25%.

The executive claims that the interest rates in the region may hover above 2% for the duration of 2024 and 2025. The analyst of the article has showed a preference for fixed income markets as a consequence of the projections from the asset manager.

However, it is important to note that the policies of Federal Reserves in the United States may differ in this regard. Investors will have certainty after the Open Market Committee set to be held on 11th June 2024. 

However, analysts claimed that the Fed is unlikely to cut rates for the ongoing month. The inflation projections and economic data have made room for interest cuts once or twice during 2024.

Another article published in Crypto News Flash has claimed that the asset management firm is eyeing Shiba Inu and XRP two potential candidates for its upcoming altcoin mutual fund.

The prediction is based on the large market cap of these digital assets in question. The article also revealed that the asset management firm started its digital asset journey after hosting a government backed-bond fund on the Stellar network (XLM).

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