Asset management colossus Franklin Templeton has recently revealed its plans to establish a second blockchain fund, following its initial successful foray into the crypto sphere in 2021. Officially dubbed as Franklin Templeton Blockchain Fund II, the new private equity fund requires a minimum investment amount of $100,000, as per its SEC filing.
With this sizable minimum investment stipulation, it is quite evident that the fund is primarily aimed at attracting institutional investors and affluent individuals. In contrast to the newly-announced fund, Franklin Templeton’s debut blockchain fund focused on venture capital investments in the 10-15 largest digital assets.
The first fund, which was set up with separate managed accounts (SMAs), is typically favored by financial institutions as it prevents a single customer’s funds from being mixed with those of other clients. However, Blockchain Fund II adopts a different approach, further highlighting the company’s innovative and adaptive stance in the digital asset market.
Franklin Templeton’s move towards expanding its crypto-centered funds corroborates the increasing recognition and acceptance of cryptocurrencies as a legitimate asset class. Additionally, it signifies the existing financial services sector’s eagerness to capitalize on the influx of wealth into the crypto market.
Already renowned within the industry as one of the most crypto-friendly asset management firms, Franklin Templeton has previously employed crypto traders and analysts for its ventures in the digital assets sector. Furthermore, the asset manager has been an advocate for the tokenization of conventional financial assets and has utilized on-chain transactions on the Stellar network for its OnChain U.S. Government Money Market Fund.
Nevertheless, skeptics might wonder whether other established financial instruments could be obscured by the growing popularity and accessibility of cryptocurrencies, and if these ventures translate to the long-term stability and success for investors. Moreover, as with any maturing technology or investment vehicle, potential roadblocks in terms of regulation and adoption still loom on the horizon.
Boasting more than $1.4 trillion in assets under management, Franklin Templeton is indisputably one of the largest asset management firms in the United States. Its decision to bolster its presence in the crypto industry underscores the ongoing shift towards digital assets among institutional investors and high-net-worth individuals, ultimately fostering further growth and innovation in the realm of blockchain technology.
Source: Cryptonews
