Major asset management firms like Franklin Templeton are leading the charge in adopting crypto ETFs and tokenized funds to drive adoption in 2025.
NEW YORK CITY – Franklin Templeton’s digital assets leader, Roger Bayston, emphasizes that diversification will be a major theme in institutional adoption of tokenized funds. The renowned asset management firm, following industry trends, introduced Bitcoin and Ethereum exchange-traded funds (ETFs) in early 2024, with the approval of crypto index funds for bitcoin and Ether this month.
Bayston notes that the first part of 2025 will see legal teams busy with ETF filings. He believes blockchain’s utility, especially bitcoin's role as a store of value and the development of composable chains, will continue to be a central narrative. New filings for Solana and XRP ETFs suggest growing optimism within the space, with hopes that a change in the SEC administration could make room for further advancements in crypto regulations.
Franklin Templeton’s approach to digital assets mirrors the long-standing research strategies the firm has employed for traditional equity and credit markets. Bayston mentions that their evaluations of crypto assets are guided by a firm understanding of market dynamics, ensuring informed and well-researched decisions.
While ETFs are seen as a way to bridge the gap between traditional finance and cryptocurrency, Bayston highlights that growing adoption requires positioning crypto in familiar, secure environments for clients.
Outside of ETFs, Franklin Templeton is making strides with its OnChain US Government Money Fund (FOBXX), which had around $430 million in assets as of November 30. Tokenized money funds like FOBXX offer a complementary alternative to stablecoins, especially for collateral in derivative transactions, providing yield-bearing options.
Since launching the tokenized fund in 2021, Franklin Templeton has been expanding its services. FOBXX became available for peer-to-peer transfers in April and was made accessible on Coinbase’s layer-2 blockchain in October, furthering its adoption.
Looking ahead to 2025, Bayston shares that the firm’s BENJI product, previously exclusive to the U.S., will soon be introduced globally.
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