Ben Strack

One of the world’s largest asset managers is exploring the use cases for NFTs despite a turbulent crypto market environment, noting such tokens’ relevance beyond just digital art.



The company minted its first NFTs — issuing them to attendees of its first Innovation Forum held in September to offer clients a way to explore the digital assets ecosystem — and now seeks to move further into the space.



“We see NFTs in their literal sense and more generally than just for their application with artwork or collectibles,” <a href="https://www.linkedin.com/in/mikemuir/" target="_blank" rel="noreferrer noopener">Mike Muir</a>, Franklin Templeton’s head of digital assets technology, told Blockworks. “[An NFT] is an applicable construct for any unique asset for which only one exists.”



For example, Muir added, loans and property titles are unique assets that are not fungible.&nbsp;



Franklin Templeton allowed attendees of its Innovation Forum the ability to download the NFT through the firm’s Benji Investments app. It acted as “a badge” and was non-transferrable, the company said, and clients could use the token to access research from the Franklin Templeton digital assets team.



US clients across asset management and financial services have shown interest in interacting with digital assets such as NFTs, according to the company.



“Firsthand practical experiences like this create understanding and foster contemplation and thought as to what else may be possible,” Muir said. “In the long term, we are considering generalizing our issuance of NFTs for a variety of purposes and are devoted to uncovering new applications for these assets.”



Dmitriy Berenzon, a research partner at early-stage venture fund 1kx, said that exploring the issuance of on-chain assets is the right way to go for institutions. He added that Franklin Templeton is correctly using this tool to drive more engagement with their community.



<blockquote class="wp-block-quote">“It is not about permissioned blockchains that try to improve the efficiency of walled gardens, but rather about permissionless, crypto networks that drive human coordination at scale through the use of tokens,” Berenzon told Blockworks. </blockquote>



For other large financial services companies, NFTs can offer additional avenues for interacting with on-chain assets and liquidity, such as liquidity pools gated by know-your-customer (KYC) requirements, the 1kx research partner added.



“That said, they likely need more regulatory clarity prior to committing any significant amount of balance sheet,” Berenzon said.&nbsp;



<h3>An evolution for fund managers</h3>



Franklin Templeton, which had roughly $1.3 trillion in assets under management as of Oct. 31, has been moving deeper into the crypto space in recent months.



The company launched the <a href="https://www.franklintempleton.com/investments/options/money-market-funds/products/29386/SINGLCLASS/franklin-on-chain-u-s-government-money-fund/FOBXX" target="_blank" rel="noreferrer noopener">Franklin OnChain U.S. Government Money Fund</a> — a mutual fund using blockchain to process transactions and record share ownership — in April 2021.



The fund manager unveiled <a href="https://blockworks.co/news/franklin-templeton-preps-first-institutional-crypto-accounts" target="_blank" rel="noreferrer noopener">its first crypto-focused separately managed accounts</a> (SMAs) for investment professionals in September.



<a href="https://www.linkedin.com/in/roger-bayston-46256517a/" target="_blank" rel="noreferrer noopener">Roger Bayston</a>, the company’s segment lead, called digital assets “frontier risk alternatives” in <a href="https://blockworks.co/news/franklin-templeton-exec-digital-assets-are-frontier-risk-alternatives" target="_blank" rel="noreferrer noopener">an October interview with Blockworks</a>. He added that Franklin Templeton was looking into bringing additional digital asset investment strategies to market.



The fund giant’s move into NFTs comes after asset manager <a href="https://blockworks.co/news/vaneck-exec-use-cases-of-nfts-approaching-unlimited" target="_blank" rel="noreferrer noopener">VanEck launched an NFT collection</a> in May designed to ​​”build an active community of crypto-focused investors,” the firm said.



Though ProChain Capital President David Tawil said at the time VanEck’s launch was “a bit of a gimmicky way” to draw people into NFTs, he added that the effort could bridge gaps between the collectibles aspect of NFTs and their broader use cases.



VanEck’s NFT community started off with nearly 50,000 sign-ups, and the firm connected its members at in-person and virtual events, according to Matthew Bartlett, who leads VanEck’s NFT community and Web3 efforts.&nbsp;



Bartlett told Blockworks that the firm is encouraged to see another global asset manager using NFTs to foster client engagement and community building.&nbsp;



“We strongly believe that NFTs and related blockchain applications will become integral parts of the client engagement experience across a range of industries, from finance to social media to consumer technology,” he said.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

$1.3T Asset Manager Exploring Use Cases for NFTs

<div id="highlights-block_635c34e84a51b" class="highlights">
 <ul>
 <li>Future crypto products “could take many forms” based on how regulatory environment evolves, according to the firm’s head of digital assets </li>
 <li>The firm’s clients are seeking a streamlined process to invest in this space </li>
 </ul>
 
</div>



Franklin Templeton is exploring ways to bring additional digital asset investment strategies to market following the launch of its crypto-focused separately managed accounts (SMAs) last month.



<a href="https://www.linkedin.com/in/roger-bayston-46256517a/">Roger Bayston</a>, the company’s segment lead, called digital assets “frontier risk alternatives” in a recent interview with Blockworks.&nbsp;



Franklin Templeton had roughly $1.3 trillion in assets under management, as of Sept. 30. One of its <a href="https://cms.blockworks.co/franklin-templeton-preps-first-institutional-crypto-accounts/">new crypto-focused SMAs</a> invests in 10 to 15 of the largest digital assets, excluding stablecoins and meme coins. Its other takes a similar approach, but bitcoin and ether are both capped at 25% of the portfolio.



The products come as <a href="https://cms.blockworks.co/74-of-institutions-plan-to-buy-crypto-fidelity-survey/" target="_blank" rel="noreferrer noopener">institutional adoption of crypto is on the rise</a>, according to a recent Fidelity survey, with 74% such investors saying they plan on buying digital assets in the future.



Bayston <a href="https://cms.blockworks.co/franklin-templeton-exec-crypto-asset-class-has-thematic-tailwinds/" target="_blank" rel="noreferrer noopener">said in May</a> that crypto was an asset class with “a great deal of thematic tailwinds,” as industries begin to unlock the potential of blockchain. 



More recently <a href="https://www.linkedin.com/in/sandy-kaul-8571877/" target="_blank" rel="noreferrer noopener">Sandy Kaul</a>, Franklin Templeton’s senior vice president of digital assets and industry advisory services, <a href="https://www.franklintempletonglobal.com/articles/disruption/evolution-of-commercial-technologies-and-impact-on-business-delivery" target="_blank" rel="noreferrer noopener">published research</a> about, in part, how decentralization is poised to disrupt traditional finance over the next decade. 



Blockworks checked back in with Bayston about what’s next.



Blockworks: Following the launch of crypto-focused SMAs, what other types of crypto offerings might the firm be looking to offer?



Bayston: We are committed to providing industry relevant opportunities to meet the evolving investment needs of our clients.



Our robust team of investment talent provides deep tokenomics research for our strategies, which are managed on a proprietary management platform built from the ground up. This gives us the expertise to offer the best advice and active management possible for our clients.&nbsp;



We are continuing to develop delivery mechanisms to deliver digital asset investment strategies for a variety of investors.



Blockworks: Could these include more SMAs? How about crypto-related ETFs?



Our experienced investment team has created many portfolio strategies utilizing various degrees of discretionary decision-making and research intensity.&nbsp;



Given the ripe field of innovation that blockchain technologies offer, you can expect Franklin Templeton to continue to bring relevant product ideas to the market. These products could take many forms based on current or future regulatory permissions.



Blockworks: What is the firm hearing from clients right now in regards to crypto?&nbsp;



Bayston: We believe that digital assets are frontier risk alternatives – new investable opportunities that capture the return streams of novel business models and can generate long-term growth.&nbsp;



We are seeing investors with a variety of interest, experience and exposure levels with these assets across the world and the desire for sound investment advice.&nbsp;



We are hearing from clients on the need for a streamlined process to invest in this space, founded on deep asset research and professional portfolio management, in order to generate the highest capital appreciation with an eye on risk management.



Blockworks: What are your thoughts on the <a href="https://cms.blockworks.co/ethereum-switches-to-proof-of-stake-after-7-years-of-work/" target="_blank" rel="noreferrer noopener">Ethereum Merge</a>? How could it impact adoption?  



Bayston: The transition to a proof-of-stake protocol illustrates the continuous innovation we see with blockchains, but more specifically represents a major software upgrade for the network with the possibility for improved security and capital and energy efficiency.&nbsp;



A resulting outcome of this event is a major reduction in Ethereum’s carbon footprint, which is desirable to appeal toward institutional ESG [environmental, social, governance] mandates. The evolution of Ethereum is an example of how this technology continues to evolve. Our investment platform will also evolve as the platforms grow and innovation in this space continues.



Blockworks: What crypto trends is Franklin Templeton most focused on right now?



Bayston: We believe that mass adoption of digital assets likely starts with the tokens themselves, and inclusion of these assets in investment portfolios will pave the way for other use cases for blockchain technology.&nbsp;



The digital asset space can bring two broad themes to investment management: expanding the opportunity set for investment options to include the blockchains themselves or bringing assets on chain in a more fungible way, and using the blockchain rails to create operational efficiencies across traditional asset management processes.



Blockworks: What does the company expect from a crypto regulatory perspective in the coming months? How might it be engaging to influence policy in the segment?



Bayston: There is substantial global regulatory development with digital assets in a variety of geographies, and we believe regulators are conducting their due diligence to take a measured approach to regulation.&nbsp;



We are comfortable navigating the global regulatory environment as it develops around the world.&nbsp; We’re a collaborator with regulators, given our focus on providing the best advice and service to our clients and view that the future of asset management includes blockchain technology and digital assets.



The interview was edited for clarity and brevity.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

Franklin Templeton Exec: Digital Assets Are ‘Frontier Risk Alternatives’

<div id="highlights-block_631a2becd2248" class="highlights">
 <ul>
 <li>The firm is offering a market cap-weighted strategy that invests in 10 to 15 of the largest digital assets, as well as a similar one that caps allocations to BTC and ETH</li>
 <li>Franklin Templeton made a strategic investment in SMA platform Eaglebrook Advisors in April</li>
 </ul>
 
</div>



Franklin Templeton is set to offer cryptocurrency-focused separately managed accounts (SMAs) to investment professionals for the first time.



The move is the latest example of a traditional finance giant diving into digital assets — despite the ongoing bear market. Separately managed accounts are sometimes favored by institutional investors over commingled funds, because they come with customized strategy and risk profiles, as well as instant liquidity.&nbsp;



The launches follow Franklin Templeton’s <a href="https://www.prnewswire.com/news-releases/eaglebrook-advisors-raises-strategic-capital-from-franklin-templeton-301518638.html" target="_blank" rel="noreferrer noopener">strategic investment</a> in SMA platform Eaglebrook Advisors in April. The $1.4 trillion asset manager’s first crypto strategies will be available to financial advisers and wealth managers working with US investors via Eaglebrook’s turnkey platform by mid-October.



Roger Bayston, Franklin’s head of digital assets, told Blockworks the firm’s registered investment adviser (RIA) partners have a growing interest in alternative investments, including crypto. But regulatory ambiguity in the US means cryptoassets are not yet securities, he added.&nbsp;



“Customized SMAs are a perfect delivery mechanism for these assets constructed by sound advice,” Bayston said in an email. “SMAs are a significant business in traditional finance, and we are bringing these digital assets into a high-quality product offering delivered via RIAs. This is a further extension of what we do.”



Eaglebrook Advisors CEO Christopher King said Franklin Templeton’s new offerings represent “an inflection point” for crypto, as the US wealth management market is demanding professionally managed digital asset SMA strategies from trusted asset managers.



He called the segment the “lowest-hanging fruit” for the crypto market <a href="https://cms.blockworks.co/eaglebrook-ceo-advisors-the-lowest-hanging-fruit-for-crypto-market/" target="_blank" rel="noreferrer noopener">in an interview with Blockworks last year</a>, adding at the time that about 95% of the adviser market had not yet invested in cryptoassets.



“We are working together on sales and distribution of these strategies and helping wealth managers and the clients they serve understand the digital asset market,” King told Blockworks.&nbsp;



Franklin Templeton’s Digital Assets Core SMA is a market cap-weighted strategy that invests in 10 to 15 of the largest digital assets, excluding stablecoins and meme coins.



Its Digital Assets Core Capped SMA takes a similar approach, but caps its allocations to bitcoin (BTC) and ether (ETH) at 25% of the portfolio each.&nbsp;



Though competing asset managers, such as <a href="https://cms.blockworks.co/blackrock-lists-blockchain-etf-days-after-similar-fidelity-launch/" target="_blank" rel="noreferrer noopener">BlackRock</a> and <a href="https://cms.blockworks.co/fidelity-launches-metaverse-experience-in-tandem-with-new-etfs/" target="_blank" rel="noreferrer noopener">Fidelity</a>, launched ETFs focused on blockchain technologies in April, Bayston said then that Franklin Templeton was still mulling the right time for an entrance. 



Fidelity in April moved to allow certain US workers to <a href="https://cms.blockworks.co/fidelity-delves-deeper-into-crypto-by-allowing-bitcoin-in-401ks/" target="_blank" rel="noreferrer noopener">allocate a portion of their retirement savings to bitcoin</a> through the company’s 401(k) plan investment lineup. BlackRock, the world’s largest asset manager with roughly $8.5 trillion, <a href="https://cms.blockworks.co/industry-watchers-execs-weigh-significance-of-blackrock-coinbase-deal/" target="_blank" rel="noreferrer noopener">partnered with Coinbase</a> last month and days later <a href="https://cms.blockworks.co/blackrock-launches-spot-bitcoin-private-trust/" target="_blank" rel="noreferrer noopener">launched a bitcoin private trust</a>.



“I’m sure more and more TradFi firms are preparing to enter this innovation-driven asset class,” said CK Zheng, an ex-Credit Suisse executive who co-founded crypto hedge fund ZX Squared Capital last year. “Even though we can’t forecast when the crypto winter will end, we know much demand from both institutional investors and high-net-worth individuals will come when the next crypto bull market starts.” 



Franklin Templeton’s product rollout came the same day as <a href="https://cms.blockworks.co/mysten-labs-300m-fundraise-values-business-at-more-than-2b/" target="_blank" rel="noreferrer noopener">Mysten Labs’ $300 million fundraise</a>. The asset manager participated in the Series B round — valuing the Web3 infrastructure company at roughly $2 billion — alongside FTX Ventures, a16z and others.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

Franklin Templeton Preps First Institutional Crypto Accounts

<div id="highlights-block_627cbf3a3c697" class="highlights">
 <ul>
 <li>Franklin Templeton expects to offer crypto products “when the regulatory landscape provides that opportunity,” firm’s head of digital assets says</li>
 <li>The company recently completed fundraising for its first blockchain-focused venture capital fund</li>
 </ul>
 
</div>



Though Franklin Templeton is bullish on crypto as an asset class, the asset manager is seeking more regulatory clarity before offering ETFs focused on the segment.&nbsp;



The San Mateo, California-based company managed roughly $1.45 trillion in assets, as of April 30, and has clients in more than 150 countries.



“Franklin Templeton understands that cryptocurrencies represent various tokenomics of blockchain and distributed ledger technology systems,” Roger Bayston, Franklin’s head of digital assets, told Blockworks.



<blockquote class="wp-block-quote">“We believe they are an asset class that has a great deal of thematic tailwinds as industries begin to unlock the potential of blockchain and new types of digital assets are created.”</blockquote>



The firm has 55 ETFs trading in the US with combined assets of nearly $1.7 billion, according to ETF.com. Bayston said Franklin Templeton is monitoring regulations around ETFs and considering that delivery mechanism for providing clients exposure to important blockchain investment strategies.&nbsp;



Though competing asset managers, such as <a href="https://cms.blockworks.co/blackrock-lists-blockchain-etf-days-after-similar-fidelity-launch/" target="_blank" rel="noreferrer noopener">BlackRock</a> and <a href="https://cms.blockworks.co/fidelity-launches-metaverse-experience-in-tandem-with-new-etfs/" target="_blank" rel="noreferrer noopener">Fidelity</a>, recently launched ETFs focused on blockchain technologies, Franklin Templeton is still mulling the right time for an entrance.&nbsp;



“We expect to provide quality products when the regulatory landscape provides that opportunity for investors,” Bayston said.



LinkedIn job postings from last week indicate that Franklin Templeton is seeking an investment research analyst to join its crypto asset management team.&nbsp;



The analyst would cover assets such as bitcoin and ether, develop and maintain valuation models and keep executives informed of protocol regulatory, staking and business opportunities, according to the posting. They would also help develop and manage new products in the cryptoasset space.



The firm did not comment on other crypto-related roles that it could seek to fill.&nbsp;



<h3>Other involvement in crypto</h3>



Franklin Templeton revealed in <a href="https://www.sec.gov/Archives/edgar/data/1882656/000188265621000001/xslFormDX01/primary_doc.xml" target="_blank" rel="noreferrer noopener">a regulatory filing</a> in September that it was <a href="https://cms.blockworks.co/franklin-templeton-prepping-blockchain-fund/" target="_blank" rel="noreferrer noopener">prepping a venture capital fund</a> focused on the blockchain space. The document indicated that the firm had so far raised $10 million for the fund and was looking to raise an additional $10 million before launching.&nbsp;



Bayston confirmed that the company recently completed fundraising for the fund but did not comment about the fund’s specifics, such as its final size.&nbsp;



“Franklin Templeton is active in projects all across the lifecycle of blockchains, ranging from investment activity at the early stages where new protocols and companies building on those protocols are being built, to offering advice on various portfolio constructions of more mature and more widely adopted blockchains,” he said.&nbsp;



The fund group’s parent company <a href="https://www.prnewswire.com/news-releases/eaglebrook-advisors-raises-strategic-capital-from-franklin-templeton-301518638.html" target="_blank" rel="noreferrer noopener">made a strategic investment</a> in crypto separately managed account platform Eaglebrook Advisors in April.



Roger Paradiso, Franklin Templeton’s head of product solutions, said in a statement at the time that the firm would look to bring advised solutions within the asset class to its partner firms, advisors and clients.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your email every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
 
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
Can&#8217;t wait? Get our news the fastest way possible.&nbsp;<a href="https://t.me/blockworks_news" target="_blank" rel="noreferrer noopener">Join us on Telegram</a> and follow us on <a href="https://news.google.com/publications/CAAqBwgKMPyTxgswn6_dAw" target="_blank" rel="noreferrer noopener">Google News</a>.
<hr class="wp-block-separator">

Franklin Templeton Exec: Crypto Asset Class Has ‘Thematic Tailwinds’

<div id="highlights-block_614395ff8802b" class="highlights">
 <ul>
 <li>Venture capital fund, which requires a minimum investment of $1 million, has already raised half of its targeted amount</li>
 <li>The fund group invested in Galaxy Digital’s fund of funds and participated in a $15 million Series A funding round for Amberdata</li>
 </ul>
 
</div>



Franklin Templeton has so far raised $10 million for a blockchain fund, according to <a href="https://www.sec.gov/Archives/edgar/data/1882656/000188265621000001/xslFormDX01/primary_doc.xml" target="_blank" rel="noreferrer noopener">a regulatory filing</a>, and the firm is looking to raise an additional $10 million before launching.&nbsp;



The offering will be a venture capital fund that requires a minimum investment of $1 million, the September 14 document indicates.



A spokesperson did not immediately respond to Blockworks’ request for comment.&nbsp;



It’s the San Mateo, California-based fund group’s latest step into the crypto space. The firm, which managed $1.56 trillion in assets as of the end of July, <a href="https://cms.blockworks.co/franklin-templeton-seeking-to-hire-crypto-trader-researcher/" target="_blank" rel="noreferrer noopener">posted job listings</a> earlier this month to hire a cryptocurrency-focused trader and research analyst.&nbsp;



The trader will be tasked with executing trades for strategies using bitcoin and ether, as well developing quantitative trading strategies, according to the job post. The research analyst will keep portfolio managers and senior executives informed of various protocol regulatory, staking and business opportunities, a separate listing stated, as well as help develop and manage new crypto products.&nbsp;



The firm is still accepting applications for the jobs on its website.



Galaxy Digital <a href="https://cms.blockworks.co/galaxy-closes-venture-fund-of-funds-backed-by-franklin-templeton/" target="_blank" rel="noreferrer noopener">previously revealed</a> that Franklin Templeton is an investor in Galaxy’s first venture-focused multi-manager fund of funds, which is focused on providing institutional investors access to pre-vetted managers investing across digital assets.



The mutual fund giant <a href="https://cms.blockworks.co/citi-leads-15m-investment-into-digital-asset-company-amberdata/" target="_blank" rel="noreferrer noopener">also participated</a> in a $15 million Series A funding round for digital asset data company Amberdata.



Franklin Templeton is looking to enter the crypto fund space as more — much larger — offerings have popped up in recent weeks.&nbsp;



Most recently, venture capital firm Jump Capital <a href="https://cms.blockworks.co/jump-capital-launches-350m-fund-with-focus-on-crypto-defi/" target="_blank" rel="noreferrer noopener">launched a crypto-focused fund</a> over 17 times larger, with $350 million total capital commitment — its largest to date.&nbsp;



Pantera Capital is also launching a <a href="https://cms.blockworks.co/as-crypto-vc-funding-hits-record-high-pantera-launched-600m-fund/" target="_blank" rel="noreferrer noopener">new blockchain fund,</a> and it is already more than halfway to its goal of a whopping $600 million. Meanwhile, Private equity firm 10T Holdings <a href="https://cms.blockworks.co/10t-holdings-raises-750m-for-first-growth-equity-funds/" target="_blank" rel="noreferrer noopener">announced last week</a> that it has so far raised $750 million for its first two growth equity funds focused on digital asset companies. As of mid-June, venture capital funds in 2021 had put an <a href="https://cms.blockworks.co/crypto-venture-funding-is-at-an-all-time-high-this-is-where-the-money-is-going/" target="_blank" rel="noreferrer noopener">all-time high of $17 billion</a> into crypto companies and projects, according to data provider PitchBook.



<hr class="wp-block-separator"/>



Are you a UK or EU reader that can’t get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.



<hr class="wp-block-separator"/>

Franklin Templeton Prepping Blockchain Fund

<div id="highlights-block_613105a87213b" class="highlights">
 <ul>
 <li>Crypto trader to trade for strategies using “the largest, most liquid listed and tradable crypto assets,” according to Sept. 1 job posting</li>
 <li>Research analyst will keep portfolio managers and senior executives informed of various protocol regulatory, staking and business opportunities</li>
 </ul>
 
</div>



Franklin Templeton is seeking to hire a cryptocurrency trader and research analyst as it builds out a new investment unit focused on the space.&nbsp;



The San Mateo, California-based fund group managed $1.56 trillion in assets, as of the end of July. The company, which acquired competing asset manager Legg Mason last year, becomes the latest traditional financial services titan looking to dabble in the crypto space.



Franklin is looking for a cryptocurrency trader to execute trades for strategies using “the largest, most liquid listed and tradable crypto assets,” such as bitcoin and Ether, according to a Sept. 1 job post.&nbsp;



“The quantitative trader will also bring a process automation mindset to build or work with developers to construct tools to support the platform’s growth,” the listing states. “The trader will add insight and develop quantitative trading strategies.”



The firm is also seeking to hire a crypto research analyst, according to a separate listing published on the same day.&nbsp;



“This person will develop and maintain valuation models and keep portfolio managers and senior executives informed of various protocol regulatory, staking and business opportunities,” the post states. “The analyst will be expected to help develop and manage new products in the crypto asset space.”&nbsp;



The trader will join Franklin Templeton’s digital asset management team, while the research analyst would be added to a crypto asset management unit, the job postings indicate. It is unclear if these are two separate divisions.



A spokesperson for Franklin Templeton did not immediately respond to Blockworks’ request for comment.



Anthony Hardy, a research analyst for Franklin Templeton’s equity group, wrote in a March blog post that a search for inflation hedges and returns in a low interest rate environment were among the factors driving the runup of bitcoin’s price. The rise of decentralized finance and institutional adoption also contributed, he added.



Hardy wrote at the time that the birth of a new financial and internet ecosystem can co-exist with the current one, noting that these trends are likely to play out over the course of many years.&nbsp;



<blockquote class="wp-block-quote">“My view is that crypto is here to stay,” he said. “There will undoubtedly be future bull and bear markets, but in my view, the technological feat of solving for digital scarcity and the innovations currently happening in the space cannot be forgotten.”</blockquote>



The job postings come as fellow large financial companies have entered the crypto space.&nbsp;



<a href="https://cms.blockworks.co/goldman-sachs-doubles-down-on-crypto-with-derivatives-trading-team/" target="_blank" rel="noreferrer noopener">Goldman Sachs revealed in May </a>that it would offer bitcoin derivatives to clients as well as opening a dedicated trading desk for cryptocurrency.&nbsp;



In June, custody bank State Street, which oversees $40 trillion in assets, <a href="https://cms.blockworks.co/state-street-launches-digital-finance-unit-for-crypto/" target="_blank" rel="noreferrer noopener">launched a new division</a> focused on the shift to digital finance, and Bank of America announced about a month later that it was set to begin <a href="https://cms.blockworks.co/state-street-launches-digital-finance-unit-for-crypto/" target="_blank" rel="noreferrer noopener">research coverage</a> of cryptocurrency and digital assets.

Franklin Templeton Seeking to Hire Crypto Trader, Researcher

Casey Wagner

<div id="highlights-block_610025bac104d" class="highlights">
 <ul>
 <li>Galaxy Digital closes its first fund of funds since Vision Hill acquisition in an oversubscribed amount of $33.75 million</li>
 <li>The fund will invest in projects working on DeFi, NFTs, Web 3.0 and infrastructure and services, with a focus on pre-seed and seed funding</li>
 </ul>
 
</div>



Galaxy Digital has closed its first fund of funds since its Vision Hill Group acquisition in May. The Galaxy Vision Hill Venture Fund of Funds I closed in an oversubscribed amount of $33.75 million, the company announced Tuesday.&nbsp;



The Fund was Galaxy’s first venture-focused multi-manager fund of funds vehicle. It focused specifically on providing institutional investors access to pre-vetted managers investing across digital assets, Galaxy said.&nbsp;



“Our goal is to be the first call for institutions seeking exposure to crypto,” said Steve Kurz, partner and head of asset management at Galaxy Digital. “This fund represents another foundational step in building the most comprehensive, institutional fund platform in the blockchain and digital assets industry.”



The fund of funds is the second fund in Galaxy Vision Hill’s product suite within Galaxy Fund Management, Galaxy’s asset management arm, which has $1.4B in assets under management as of June.



The fund will invest in projects working on DeFi, NFTs, Web 3.0 and infrastructure and services, with a focus on pre-seed and seed funding, Galaxy said. Capital has already been deployed to Spartan Group, a boutique blockchain investment firm which <a href="https://cms.blockworks.co/coinfund-parafi-capital-co-lead-seed-round-for-staking-platform-claystack/" target="_blank" rel="noreferrer noopener">recently participated</a> in ClayStack’s seed round. 



“We’ve witnessed promising growth in crypto, evidenced by Fidelity’s recent survey indicating that more than half of institutions across Asia, Europe, and the U.S. currently invest in digital assets,” said Scott Army, CIO of Galaxy Vision Hill, referring to <a href="https://cms.blockworks.co/fidelity-71-of-institutional-investors-plan-to-buy-crypto/" target="_blank" rel="noreferrer noopener">Fidelity’s report</a> that 71% of institutional investors plan to gain crypto exposure. 



Galaxy’s asset management division plans to offer additional actively managed and market neutral funds, appealing to a range of investors, from high net worth to family offices, the firm said.&nbsp;



“As institutional interest continues to swell, this fund unlocks access to promising projects across every investable corner of the crypto economy to bring more people into the tent,” said Army.&nbsp;



The fund is the latest example of Galaxy leaning into emerging areas of crypto. Galaxy Interactive, the multi-limited partner venture fund that sits under Galaxy Digital’s asset management unit, became lead investor in virtual real estate developer Republic Realm earlier this year.&nbsp;



Franklin Templeton, the mutual fund giant with more than $1.4 trillion in assets under management as of 2020, is an investor in the fund, Galaxy revealed. Other investors and capital recipients were not disclosed.&nbsp;