Franklin Templeton Takes Bold Step With New Crypto Fund For Investors

Key Points:

• Franklin Templeton, a trillion-dollar fund manager, filed a crypto fund for institutional investors on the US Securities and Exchange Commission (SEC).
• The minimum investment sum for the fund is $100,000, and the filing states that the fund won’t likely be open for more than a 12-month period.
• Franklin Templeton is one of the largest established firms introducing crypto products, and it tokenized U.S. government securities, cash, and repurchase agreements. It is the first U.S.-registered mutual fund using a blockchain network for logging and processing transactions.

Franklin Templeton, one of the largest asset managers in the world with around $1.4 trillion in assets, has filed for yet another crypto fund for institutional investors, according to a related filing with the United States Securities and Exchange Commission (SEC).

The fund, which is expected to be called the Franklin Templeton Blockchain Fund II, will be the second crypto-related fund that the investment company has launched, following its announcement of a fund for separately managed accounts (SMAs) for investment professionals towards the end of 2022.

While the minimum investment sum for the fund is currently set at $100,000, details on the fund’s objectives and investment strategy remain scant. However, it is expected that more information will emerge in the coming months, as the filing hints that the fund won’t be open for more than a 12-month period. The investment firm has not issued any public statements regarding the matter.

With this move, Franklin Templeton is joining a growing number of traditional financial firms that are looking to offer products related to crypto. This trend is likely to continue in 2023, as more established financial institutions are eager to tap into the booming crypto market.

Notably, Franklin Templeton has already shown its strong interest in the crypto market by putting one of its products on the Polygon blockchain. The OnChain U.S. Government Money Market Fund (FOBXX) is the first U.S.-registered mutual fund that uses a blockchain network for logging and processing transactions. This product tokenizes U.S. government securities, cash, and repurchase agreements, and is available on the Stellar network as well.

Given Franklin Templeton’s growing interest in the crypto market, it is likely that we will see more innovative products from the investment firm in the near future. As private equity continues to gain traction in the crypto market, it will be interesting to observe how established financial firms such as Franklin Templeton adapt to the new landscape.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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