Franklin Templeton Preparing New Cryptocurrency ETF with Staking Feature
Date: 2024-06-07 Author: Henry Casey Categories: BLOCKCHAIN
Franklin Templeton, one of the leading investment firms, plans to launch a new cryptocurrency ETF that will differ from traditional products based on Bitcoin and Ethereum. This new fund will focus on altcoins and include a staking feature, which will be an innovation in the world of cryptocurrency investing.
Investing in Altcoins with Staking Possibility
According to information published by The Information, Franklin Templeton is going to apply for the creation of a new crypto fund that will differ from the standard ETFs based on Bitcoin and Ethereum. The new product will allow investors to invest in altcoins and use the staking function to generate additional income.
Waiting for SEC Approval
Franklin Templeton is also awaiting approval from the US Securities and Exchange Commission (SEC) to launch its Ethereum ETF. The S-1 filing has already been filed, and the company is hoping to get the green light from regulators to bring the new product to market.
Successes in the Spot Bitcoin ETF Segment
Franklin Templeton's Bitcoin spot exchange-traded fund, known as EZBC, currently ranks ninth in its class by funds under management. The fund has raised $435 million since its launch in January 2024. The largest inflow of $61 million was recorded on May 3, but inflows declined in subsequent months.
Tokenization of US Government Bonds
Franklin Templeton is also actively using blockchain technology in other areas. The company recently announced the tokenization of $380 million in US government bonds. The new fund, Franklin OnChain (ticker FOBXX), is the first US government fund to use a public blockchain to conduct peer-to-peer (P2P) transactions without intermediaries.
Declining Capital Flows into Spot Bitcoin ETFs
It was previously reported that capital inflows into spot Bitcoin ETFs fell to $488 million. This may indicate temporary volatility in investor interest in this asset class, which makes Franklin Templeton's plans to diversify into altcoins especially relevant.
Franklin Templeton continues to expand its cryptocurrency investment products, offering new opportunities for investors. The launch of a new staking ETF with a focus on altcoins, as well as innovations in government bond tokenization, highlight the company's commitment to leveraging modern technology and adapting to the rapidly changing financial landscape.
