Franklin launches FOBXX fund on Ethereum
Franklin Templeton recently announced the expansion of its Nasdaq-listed OnChain U.S. Government Money Market Fund (FOBXX) to Ethereum, the world’s second-largest cryptocurrency network by market capitalization. The fund has previously operated on multiple blockchains, including Avalanche, Stellar, Aptos, and Ethereum’s scaling networks Arbitrum, Polygon, and Base, but this is the first time it has been deployed on the Ethereum mainnet.
FOBXX is a fund that lets clients invest in U.S. government securities, cash and repurchase agreements, with investors buying and holding shares in a digital wallet through Franklin Templeton’s Benji Investments mobile app.
Franklin Templeton announces expansion of FOBXX to Ethereum
FOBXX fund size reaches US$410 million
The FOBXX fund launched in 2021, becoming the first money market fund to use a public blockchain to track transactions and holdings. The fund currently has a market capitalization of $410 million, making it the third-largest tokenized money market fund. According to data from rwa.xyz, Ethereum leads the way in tokenized Treasury issuance, handling over $1.6 billion in assets, followed by Stellar and Solana.
Asset management firm Grayscale noted in an April report that Ethereum is "meaningfully decentralized and trustworthyly neutral" for network participants, which is likely to be the case for any global tokenized asset platform. Necessary conditions and therefore the most likely to benefit from tokenization in smart contracts.
New whale enters the market, buying over $57 million worth of Ethereum
At the same time, a new Ethereum whale has emerged on the market, seemingly taking advantage of the current price for the long term. A new whale address has amassed 7,389.5 Ethereum worth approximately $23.44 million in the past 24 hours, according to on-chain wallet tracker Lookonchain.
The wallet has been active since November 9 and has so far purchased over 18,000 Ether at an average price of $3,201, with a current total value of approximately $57.8 million. The wallet only holds Ethereum and $19.3 million in Tether ($USDT), meaning the whale could accumulate further Ethereum if the price takes a favorable dip.
New whales are taking in Ethereum chips
Ethereum price faces resistance, but market outlook looks promising
Although Ethereum surged past $3,000 last week, its gains have slowed. Independent trader Eddie mentioned that Ethereum’s recent price rise to $3,450 perfectly hit the 0.618 Fibonacci line drawn between its all-time high and 2022 low. He noted that there is a strong supply zone between $3,100 and $3,500, and he expects prices to need more corrections to break out of this range.
Ethereum’s recent price has perfectly hit the 0.618 Fibonacci line drawn between its all-time high and 2022 low
From a technical perspective, Ethereum is likely to retest the value gap (FVG) formed between $3,072 and $2,987 on the daily chart. The range contains a block of orders and support at the 50-EMA level on the four-hour chart. Therefore, if Ethereum regains bullish momentum in the $3,000 range, the price may rebound here.
Ethereum may retest the value gap (FVG) forming between $3,072 and $2,987 on the daily chart
Overall, Franklin Templeton’s expansion of its $400 million FOBXX fund to the Ethereum blockchain, as well as the entry of new whale addresses, have brought new vitality to the Ethereum market. Although the price currently faces resistance, the future development of Ethereum is worth looking forward to as the participation of institutional investors and the market's interest in tokenized assets increase.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reproduced with permission from: CryptoCity
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