Asset manager Franklin Templeton to launch institutional crypto accounts

  • Franklin Templeton’s crypto “separately managed accounts’` (SMA) launch comes from the rising demand for professionally managed digital assets accounts.
  • Institutions’ interest in the crypto space might be sparked again with this development since it has been on a decline for weeks now.
  • The crypto market is still in a bearish state, valued under $1 trillion, making investments in this space a difficult decision for investors.

The crypto space is observing newer participants with every passing day, and this constitutes individuals with some wealth to people with excessive wealth. The latter cohort, in particular, has been a major player in the industry, and the need for professional management of such money has been a demand for a long time. 

Franklin Templeton pays heed to this demand

In an announcement on Thursday, Franklin Templeton introduced two new digital asset separately managed accounts (SMA). The strategies will be executed through Eaglebrook Advisors, a firm Franklin Templeton invested in earlier this April. 

Starting mid-October, users can gain access to the two SMAs via Eaglebrook’s turnkey platform, which has been designed specifically for financial advisors, wealth managers and their clients.

Commenting on the launch, Sam Marciano, head of SMA Distribution at Franklin Templeton, said, 

“Expanding Franklin Templeton’s diverse SMA capabilities to include digital asset SMAs affirms our commitment to offering industry relevant investment solutions that meet the evolving needs of our clients.”

For a long while, professionally managed crypto SMAs have been demanded by wealth managers, and the arrival of Franklin Templeton’s strategies is opportune as it could rejuvenate the interests of institutional investors.

Part of the same cohort, institutional investors have been pulling away from the crypto market for reasons ranging from terrible market conditions to Fed policies and inflation, etc. This is why for almost seven weeks now, barely any inflow has been recorded.

According to a CoinShares report, in the week ending September 2, minor inflows amounting to $9.2 million were recorded. In fact, since April, the overall inflows have been below $100 million except for a blip in the first week of August.

Institutional inflows over the last nine months

The crypto market today

The persisting bearishness in the market invalidated all recovery noted by cryptocurrencies in August and brought the total value of said cryptocurrencies to just $951 billion. The selling pressure that ensued after the market cap almost hit $1.16 trillion resulted in this downfall.

But signs of increasing buying pressure are visible in the crypto market, which is essential for recovery. Should the value of cryptocurrencies increase, it is bound to note some resistance around the $1.16 trillion mark. 

The crypto market is valued at $947 billion

This is because this level has acted as support for higher lows and resistance for lower highs for more than four months now and continues to remain relevant.

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