Since the success of Bitcoin and Ethereum-based ETFs, financial institutions have been eager to launch altcoin-based funds that track popular tokens like XRP, Solana and Dogecoin.
Crypto News
Franklin Templeton's Head of Digital Assets Roger Bayston is looking to offer clients packaged investments that contain an entire portfolio of cryptocurrencies. A year from now, diversification could be what garners major interest, Bayston told The Block.
Single asset ETFs are “super interesting” with “a lot of community enthusiasm,” Bayston said, adding, “There’s going to be a bunch of ETF availability and diversified portfolios.” On the first day of trading, Grayscale and Franklin Templeton's new spot XRP ETFs each attracted over $60 million in inflows.
Since the success of Bitcoin and Ethereum-based ETFs, financial institutions have been eager to launch altcoin-based funds that track popular tokens like XRP, Solana and Dogecoin. Bayston seemed enthusiastic about the next phase that Franklin Templeton can offer its wide array of clients, which includes investment advisors and wealth managers.
The executive pointed to Franklin Templeton's EZPZ fund, which holds both Bitcoin and Ethereum, as an example of a diversified ETF. The firm's strategy has not just been in single asset ETFs, but in diversified exposure, Bayston added.
Bloomberg Senior ETF analyst Eric Balchunas projects that over 100 new crypto ETFs will launch in the next six months. As of last month, there were over 150 cryptocurrency-based exchange-traded product filings tracking 35 different digital assets.
Issuers flooded the zone with proposals for 2x and 3x leveraged ETFs, among others, in addition to funds with staking components. The massive flow of proposals came in the wake of the U.S. Securities and Exchange Commission approving new listing standards.
Even T. Rowe Price, the legacy asset management company with nearly $1.8 trillion in assets under management, has filed to launch its first crypto exchange-traded fund. NovaDius Wealth Management President Nate Geraci said on X that traditional finance investors are not ready to navigate all of these single tokens.
“They’re going to take a diversified, shotgun approach to an emerging asset class,” Geraci said. Franklin Templeton's spot Bitcoin and Ethereum ETFs manage $501 million and $65 million, respectively. The firm has a total of $1.7 trillion in assets under management.
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