Franklin Templeton, a leading global asset manager, is reportedly exploring the creation of a new private fund aimed at institutional investors, which will focus on altcoins. This move marks a significant expansion of their cryptocurrency offerings beyond their current investments in Bitcoin (BTC) and Ether (ETH).

According to a June 6 report from The Information, the proposed fund would provide institutional investors with exposure to a range of altcoins and offer staking rewards. The specifics of which altcoins will be included in the fund’s basket have not been disclosed. However, the asset manager has recently highlighted the growth of the Solana network, noting a 319% increase in Solana’s spot decentralized exchange volume to $1.5 billion in the first quarter of 2024, as reported by analytics firm Messari.

Franklin Templeton, which manages approximately $1.64 trillion in assets as of March 2024, ranks among the largest investment management firms globally. The company's venture into altcoins reflects its ongoing commitment to diversifying its crypto asset offerings.

The company has been actively involved in the crypto space with several initiatives. One of their prominent projects is a spot Bitcoin exchange-traded fund (ETF) launched in January. Additionally, Franklin Templeton is advocating for a spot Ether ETF, which has recently been approved by the United States Securities and Exchange Commission (SEC) and is awaiting clearance to launch.

Franklin Templeton has expressed optimism about the future of Ethereum. “We are excited about ETH and its ecosystem. Despite the midlife crisis it’s recently experienced, we see a bright future with many strong tailwinds to push the Ethereum ecosystem forward,” the company previously stated on X.

In a related development on June 6, Franklin Templeton introduced a new feature on its Benji Investments platform, enabling investors to fund investments in its money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX), using USD Coin (USDC) stablecoin. This fund is notable for being the first U.S.-registered mutual fund to process transactions and record ownership on a public blockchain, with each share represented by the BENJI token. The conversion process will be facilitated by Zero Hash, a crypto and stablecoin infrastructure platform.

According to Dune Analytics, Franklin Templeton’s money market fund currently manages $357 million in assets.

This potential new altcoin fund and other recent innovations underscore Franklin Templeton’s proactive approach in integrating cryptocurrency into their investment strategies, reflecting the growing acceptance and mainstreaming of digital assets in the financial industry.