Franklin Templeton Altcoins Fund Sparks Crypto Portfolio Changes

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

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

Franklin Templeton Eyes Altcoin Fund

According to a recent report, Franklin Templeton aims to provide institutional investors with exposure to altcoins with a new fund. This initiative offers rewards that can increase interest in altcoin investments.

While specific altcoins remain undisclosed, Franklin Templeton praised Solana's high growth.

“At Solana, we see Anatoly's vision of a single atomic state machine as a powerful application of decentralized blockchain data. And we were impressed with all the activity on Solana in Q4 2023: DePIN, DeFi, Meme Coins, NFTs, Firedancer,” said Franklin Templeton.

Additionally, Mesari Solana's decentralized foreign exchange volume rose 319% to $1.5 billion in the first quarter of 2024.

“Network activity, measured by non-voice transactions and payers, continued to grow in Q1. Average daily payers increased 214% QoQ to 597,000, peaking at over 2 million on March 17. Growth in addresses was largely driven by memecoin trading. Average daily volume Wireless transactions grew 71% QoQ to 70 million,” Mesari analysts wrote.

Read more: Which are the best Altcoins to invest in June 2024?

Franklin Templeton's involvement in the crypto market is already significant, with notable projects including a Bitcoin exchange-traded fund (ETF) launched in January. The company is currently sponsoring an Ethereum ETF pending approval from the United States Securities and Exchange Commission (SEC).

This continued engagement with major altcoins underscores Franklin Templeton's commitment to expanding its crypto asset portfolio.

“We are very excited about ETH and its ecosystem. Despite the recent mid-life crisis, we see a bright future with plenty of strong tailwinds to push the Ethereum ecosystem forward,” wrote Franklin Templeton.

This possible move by Franklin Templeton sends a clear message to crypto analysts and investors. For example, the analyst Michael van de Pop has adjusted his crypto portfolio to focus more on altcoins, predicting that they will soon achieve higher profits.

Michael van de Pop portfolio change

Van de Pop cited the growing interest in Bitcoin ETFs and the adoption of Ethereum ETFs as significant market drivers. He also emphasized the importance of crypto portfolio management to maximize returns.

As a result, recently decided to leave Cosmos (ATOM) due to low performance. Even if there is a significant correction of up to 50%, it will not meet the expectation of recovery and growth.

Another altcoin, the Portfolio Exemption Curve (CRV), experienced a roughly 130% run from January to March, but has since fallen back significantly. Finally, although fundamentally strong, Polygon's (MATIC) continued underperformance led van de Pop to withdraw from the portfolio.

“I see the arguments for keeping them in my portfolio very low. I want to put these in the coins that don't have backers and they are the solution to the problem that we got into the previous cycle and we could have a high return,” van de Pop explained.

After seeing a list correction and close to 8x on Bitcoin, Van de Pop sees SEI (SEI) as a promising investment. Especially given the current momentum in the Ethereum ecosystem, it expects to be renewed.

Gaming-focused new addition PORTAL has suffered a significant setback but shows potential for a huge comeback. At a fully adjusted price of $1 billion, it fits Van de Popp's strategy to target promising new listings. Similarly, Wormhole (W) is another new addition to the 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 Ahead of the Altcoin Phase

While interest in altcoins is on the rise, the broader crypto market has seen significant changes.

A consumer bank that serves big companies like Galaxy Digital, Coinbase and Circle has reportedly said it will no longer be able to provide banking services to some altcoin hedge-fund clients. 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.