Franklin Templeton Plans Expansion of ETFs and Tokenized Fund in 2025
This is a segment from the Forward Guidance newsletter.
Diversification in Crypto Investing
Franklin Templeton’s Roger Bayston emphasizes "diversification" as key for crypto investing in 2025. The firm launched bitcoin and ether ETFs in January and July, respectively. Recently, the SEC approved crypto index funds from Franklin and Hashdex that may include additional assets.
Bayston noted that ETF legal teams will be active early in the year, and he anticipates discussions about blockchain's utility, including bitcoin as a store of value, will expand in 2025.
Recent spot crypto ETF filings focus on Solana and XRP. There is optimism regarding a potentially more accommodating SEC administration, although regulated futures markets for these assets are currently absent.
David Mann, head of ETF product & capital markets at Franklin Templeton, collaborates with Bayston’s digital assets team to identify promising assets, guiding product development.
Research and Fund Offerings
Franklin Templeton's research team evaluates crypto assets similarly to public equity and credit markets. While the ETFs reintroduce crypto to traditional finance, Bayston suggests expanding adoption by aligning with client preferences.
The firm also offers the OnChain US Government Money Fund (FOBXX), which had approximately $430 million in assets as of November 30. This fund is positioned for growth and can serve both as a substitute and complementary resource for stablecoin users.
Bayston highlighted stablecoins’ significant use as collateral in derivative transactions. FOBXX provides a yield-bearing alternative.
Launched in 2021, the tokenized fund enabled peer-to-peer transfers of shares in April and became available on Coinbase’s layer-2 blockchain in October.
Future Focus: Global Expansion
Looking ahead to 2025, Bayston mentioned that BENJI, previously a U.S.-only product, will soon have a global presence.