Franklin Templeton, a behemoth asset manager with a staggering $1.6 trillion under its wing, is reportedly on the cusp of launching a dedicated altcoin fund, further solidifying its presence in the burgeoning cryptocurrency space. This move has sent ripples of excitement through the crypto community, particularly regarding the potential inclusion of Shiba Inu (SHIB) and XRP.
While details surrounding the specific altcoins remain under wraps, anonymous sources suggest the fund might incorporate staking rewards, adding another layer of appeal for investors. This wouldn’t be Franklin Templeton’s first foray into the crypto realm. The company has already established itself as a forerunner in the space, venturing into spot Bitcoin Exchange-Traded Funds (ETFs), asset tokenization, and even securing approval for a potential spot Ethereum ETF.
Their initial foray, the EZBC Bitcoin ETF, launched alongside similar offerings from BlackRock and Grayscale Investments, has proven to be a success story. Data reveals inflows exceeding $350 million, demonstrating a healthy investor appetite for these instruments.
Franklin Templeton’s embrace of asset tokenization began with a US government bond fund established on the Stellar (XLM) network. This move mirrored similar initiatives undertaken by BlackRock, highlighting the growing acceptance of blockchain technology within traditional finance.
The specific altcoins destined for Franklin Templeton’s fund remain a mystery, but speculation is rife within the crypto community. SHIB and XRP, boasting significant market capitalizations, are seen as strong contenders. Beyond dominance, their widespread popularity among crypto enthusiasts adds further fuel to the fire.
For XRP, the potential inclusion in the fund could be a springboard for a long-awaited spot ETF launch. Ripple President Monica Long has emphasized the strategic importance of such a development for the company.
SHIB, on the other hand, has witnessed a recent upswing fueled by positive ecosystem developments. Recent reports earlier detailed a significant increase in the SHIB burn rate, with millions of tokens permanently removed from circulation. Despite these efforts, the token’s price continues to lag, experiencing a 6.8% dip within the last 24 hours.
Also Read: 3,436% User Surge on Shiba Inu’s Shibarium: Is a Meme Coin Price Rally Incoming?
However, inclusion in a Franklin Templeton fund could propel SHIB towards a bullish trajectory in the long run, driven by increased adoption and investor confidence. A similar scenario could unfold for XRP, which despite a 6% price drop, saw a significant 77.6% surge in trading volume at the time of writing.
Franklin Templeton’s move signifies a growing comfort level with cryptocurrencies among traditional financial institutions. The potential launch of an altcoin fund could have a significant impact on the market, particularly for tokens like SHIB and XRP. With the crypto space constantly evolving, it will be fascinating to witness the ripple effects of this development.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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