Franklin Templeton Altcoins Fund Sparks Crypto Portfolio Changes


Franklin Templeton, managing approximately $1.64 trillion in assets, is reportedly exploring the launch of a private fund for institutional investors focused on altcoins.

This move signals a strategic expansion beyond Bitcoin and Ethereum. It reflects the growing interest in diversified crypto assets among institutional investors.

Franklin Templeton Eyes Altcoin Fund

A recent report reveals that Franklin Templeton aims to provide institutional investors with exposure to altcoins through a new fund. The initiative also offers staking rewards, potentially enhancing the appeal of altcoin investments.

Binance

While specific altcoins were not disclosed, Franklin Templeton has praised Solana’s significant growth.

“On Solana, we see Anatoly’s vision of a single atomic state machine as a powerful use case of decentralized blockchains, lowering information asymmetry. And we are impressed by all the activity seen on Solana in Q4 2023: DePIN, DeFi, Meme Coins, NFTs, Firedancer,” Franklin Templeton said.

Moreover, Messari reported Solana’s spot decentralized exchange volume surged by 319% to $1.5 billion in the first quarter of 2024.

“Network activity, measured by non-vote transactions and fee payers, continued to rise in Q1. Average daily fee payers increased by 214% QoQ to 597,000, reaching a peak of over 2 million on March 17. The growth in addresses was largely driven by memecoin trading. Average daily non-vote transactions increased by 71% QoQ to 70 million,” analysts at Messari wrote.

Read more: Which Are the Best Altcoins To Invest in June 2024?

Solana (SOL) Network Metrics
Solana (SOL) Network Metrics. Source: Messari

Franklin Templeton’s involvement in the crypto market is already substantial, with notable projects including a spot Bitcoin exchange-traded fund (ETF) launched in January. The firm also advocates for a spot Ethereum ETF, which is currently pending approval from the United States Securities and Exchange Commission (SEC).

This ongoing engagement with major altcoins underlines Franklin Templeton’s commitment to broadening its crypto asset portfolio.

“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,” Franklin Templeton wrote.

This potential move by Franklin Templeton sends a clear message to crypto analysts and investors. For instance, analyst Michaël van de Poppe recently adjusted his crypto portfolio to focus more on altcoins, anticipating higher returns.

Michaël van de Poppe’s Portfolio Reshuffle

Van de Poppe cited the increasing interest in the Bitcoin ETF and the expected approval of the Ethereum ETF as significant market movers. He also emphasized the importance of crypto portfolio management in maximizing returns.

As a result, he decided to drop Cosmos (ATOM) due to its recent underperformance. Despite a significant correction of up to 50%, it did not meet his expectations for recovery and growth.

Another altcoin removed from his portfolio, Curve (CRV), experienced a swift run of approximately 130% from January to March, only to fall back significantly. Finally, despite being fundamentally strong, Polygon’s (MATIC) persistent underperformance led Van de Poppe to exclude it from his portfolio.

“I just see less arguments of having them in my portfolio as they are underperforming heavily. I want to be positioned into coins that do not have these back holders and are a solution for a problem that we have been getting into the previous cycle and are likely to have a higher return,” Van de Poppe explained.

After seeing a listing correction and subsequent rise close to 8x against Bitcoin, Van de Poppe views Sei (SEI) as a promising investment. He expects it to rebound strongly, especially given the current momentum in the Ethereum ecosystem.

A newer addition focused on gaming, Portal (PORTAL), has experienced a significant drop but shows potential for high returns. With a fully diluted valuation of $1 billion, it aligns with Van de Poppe’s strategy of targeting promising new listings. Similarly, Wormhole (W) is another new addition to his portfolio and is expected to perform well due to recent favorable market narratives and Binance listings.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Despite the rising interest in altcoins, the broader crypto market has seen substantial shifts.

Customers Bank, servicing major firms like Galaxy Digital, Coinbase, and Circle, has reportedly told some altcoin hedge-fund clients that it can no longer provide banking services. This comes after the collapse of Silvergate Bank and Signature Bank last year, reflecting the ongoing challenges faced by crypto companies in accessing traditional banking systems

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