Altcoin
Franklin Templeton Altcoins Fund Triggers Crypto Portfolio Changes
Franklin Templeton, which manages approximately $1.64 trillion in assets, is reportedly exploring launching 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 one relationship reveals that Franklin Templeton aims to provide institutional investors with exposure to altcoins through a new fund. The initiative also offers bet prizespotentially increasing the attractiveness of altcoin investing.
While the specific altcoins were not disclosed, Franklin Templeton did 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, reducing information asymmetry. And we’re impressed with all the activity seen on Solana in Q4 2023: DePIN, DeFiMeme Coins, NFTs, Firedancer,” Franklin Templeton said.
Additionally, Messari reported that Solana’s spot decentralized trading volume increased 319% to $1.5 billion in the first quarter of 2024.
“Network activity, as measured by non-voting transactions and contributors, continued to grow in the first quarter. Average daily taxpayers increased 214% quarter-over-quarter to 597,000, peaking at more than 2 million on March 17. Address growth was largely driven by memecoin trading. Average daily non-voting transactions increased by 71% quarter-on-quarter to 70 million,” say Messari analysts he wrote.
To know more: What are the best Altcoins to invest in June 2024?
Solana (SOL) Network metrics. Source: Messari
Franklin Templeton’s involvement in the cryptocurrency market is already substantial, with notable projects including a commercial Bitcoin Exchange Traded Fund (ETF) launched in January. The company also claims a post Ethereum ETFcurrently awaiting approval from the US Securities and Exchange Commission (SEC).
This ongoing engagement with major altcoins highlights Franklin Templeton’s commitment to expanding its crypto asset portfolio.
“We are excited about ETH and its ecosystem. Despite the mid-life crisis experienced recently, we see a bright future with many strong tailwinds to push the Ethereum ecosystem forward,” Franklin Templeton he wrote.
This potential move by Franklin Templeton sends a clear message to crypto analysts and investors. For example, analyst Michaël van de Poppe recently changed his crypto wallet focus more on altcoins, anticipating higher returns.
Michaël van de Poppe’s portfolio reshuffle
Van de Poppe cited growing interest in the Bitcoin ETF and the expected approval of the Ethereum ETF as important market drivers. He also underlined the importance of Crypto portfolio management in maximizing returns.
As a result, he decided to drop out Cosmos (ATOM) due to its recent underperformance. Despite a significant correction of up to 50%, it did not meet its expectations for recovery and growth.
Another altcoin removed from its wallet, Curve (CRV), rose rapidly by about 130% from January to March, and then dropped significantly. Finally, despite being fundamentally strong, Polygon (MATIC) the persistent underperformance led Van de Poppe to exclude it from his portfolio.
“I just see less argument to have them in my portfolio as they are underperforming heavily. I want to be positioned on coins that don’t have these back supports and that represent a solution to a problem that we saw in the previous cycle and that are likely to have a higher yield,” Van de Poppe explained.
After witnessing a price correction and subsequent almost 8x increase against Bitcoin, Van de Poppe sees Sei (SEI) as a promising investment. He expects a strong recovery, especially considering the current momentum in the Ethereum ecosystem.
A new gaming-focused addition, Portal (PORTAL), has seen significant declines but shows potential for high returns. At a fully diluted valuation of $1 billion, it is in line with Van de Poppe’s strategy of targeting promising new listings. Similarly, Wormhole (W) is another new addition to its portfolio and is expected to perform well due to recent favorable market narratives and Binance’s share price.
To know more: 11 Cryptocurrencies to Add to Your Portfolio Before Altcoin Season
Despite the growing interest in altcoins, the broader cryptocurrency market has seen substantial changes.
Reportedly Customers Bank, which serves major companies such as Galaxy Digital, Coinbase and Circle said some altcoin hedge fund clients who can no longer provide banking services. This comes after the collapse of Silvergate Bank and Signature Bank last year, reflecting the ongoing challenges faced crypto companies in accessing traditional banking systems
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