Prominent altcoins like Shiba Inu and XRP may benefit significantly as Franklin Templeton, a firm managing $1.6 trillion in assets, considers investing in altcoins beyond Bitcoin (BTC) and Ethereum (ETH).
Recently, insider reports reveal that the Silicon Valley-based firm Franklin Templeton is contemplating launching a new cryptocurrency-focused investment fund. This fund, tailored for institutional investors, would potentially include a diverse range of cryptocurrencies other than the dominant BTC and ETH.
Notably, Franklin Templeton is among several traditional finance behemoths entering the virtual asset industry to offer crypto investments as well as investments in tokenized assets.
In January, the firm launched a Bitcoin spot exchange-traded fund (ETF) in the U.S. alongside BlackRock and Fidelity. This Bitcoin investment product now boasts over $350 million under management. Following this success, Franklin Templeton has decided to list a similar product for Ethereum.
If the proposed crypto altcoin fund comes to fruition, it may include staking rewards, according to anonymous sources. Notably, this feature is absent in last month’s approval for spot Ethereum ETFs.
In 2021, Franklin Templeton pioneered a tokenized U.S. government bond fund on the Stellar (XLM) network, a move that predated similar initiatives by BlackRock.
Altcoins like Shiba Inu and XRP Hoped as Targets
Franklin Templeton’s potential expansion into the altcoin market has sparked optimism among community analysts about the market’s growth prospects.
While the specific altcoins the fund might target have not been disclosed, market participants are particularly optimistic about large-cap tokens such as Solana (SOL) and XRP. Interestingly, members of the meme coin community are also hopeful about Shiba Inu’s prospects.
Solana and XRP easily emerge as potential targets, considering their prominence in the crypto market and widespread appeal. Discussions in the crypto community about the next crypto asset ETF after Ethereum have frequently revolved around SOL and XRP.
Similarly, meme coins such as Shiba Inu are also considered potential beneficiaries of Franklin Templeton’s move amid their appeal to retail and institutional players.
Evidence of this institutional appeal is seen in reports that venture capital firms like Symbolic Capital Partners and SCP Ventures have incorporated Shiba Inu into their digital asset portfolios.
