After Bitcoin, the sharp-eyed Franklin Templeton has his sights set on Ethereum and Solana

In a series of tweets on Wednesday, global investment firm Franklin Templeton commented on the merits of layer-one blockchain Solana and Ethereum, sparking speculation about the investment giant's next move.

One of the largest asset management firms in the world, Franklin Templeton, manages over $1.4 trillion in assets.

“We believe that as the fees and performance of blockchains improve, the potential use cases being unlocked will increase exponentially,” said Franklin Templeton’s digital asset team. “Improving the economics and user experience for the end user cannot be overemphasized.”

Last week, Franklin Templeton joined other major companies including BlackRock, VanEck, Ark Invest and Fidelity in getting their spot Bitcoin ETFs approved by the US Securities and Exchange Commission.

Franklin Templeton expressed his admiration for the Solana blockchain, calling Solana Labs co-founder Anatoly Yakovenko's vision of a single atomic state machine a “powerful use case.”

“On Solana, we see Anatoly’s vision of a single atomic state machine as a powerful use case of decentralized blockchains that reduces information asymmetry,” they said. “And we are impressed with all the activity on Solana in the fourth quarter of 2023.”

Projects highlighted by Franklin Templeton that are driving activity on the Solana blockchain include DePIN, meme coins, NFTs, DeFi, and the powerful validator client Firedancer.

The report also expressed excitement about Ethereum and its ecosystem, noting the growth difficulties of the largest proof-of-stake blockchain.

“We are excited about ETH and its ecosystem,” the company said. “Despite the recent mid-life crisis, we see a bright future with many strong tailwinds to propel the Ethereum ecosystem forward.”

The company highlighted several factors that it believes are positively contributing to the momentum of the Ethereum ecosystem, including EIP 4844, Alternative Data Availability (Alt DA) developments, community revitalization, and reallocation.

Franklin Templeton's account went on to say that the company believes that other Layer 1 blockchains, in addition to Bitcoin, Ethereum and Solana, also have potential.

“Other L1s outside of BTC, ETH and SOL have tremendous potential, and we continue to support, monitor and develop these networks as they grow and mature,” they said.

“The lawyers do not allow us to respond to comments, but we are listening to you,” the report concludes.

When reached for comment on the tweets, a spokesperson for Franklin Templeton declined to comment further.

“We cannot comment on possible future fund offerings, but we can say that we continually monitor developments in the digital assets and ETF ecosystems to identify opportunities to diversify our offerings,” the spokesperson told Decrypt.

Edited by Ryan Ozawa.

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