Franklin Templeton has closed its purchase of 250 Digital and immediately set up a dedicated active digital asset management unit called Franklin Crypto. The move, announced today, marks the traditional asset manager's deepest push yet into crypto — it's not just buying a team; it's building a permanent institutional-grade operation around the strategies they ran.
What the Deal Includes
The acquisition brings the entire 250 Digital investment team under Franklin Templeton's roof. No headcount numbers were disclosed, but the firm said the group will operate as the core of Franklin Crypto. The deal also folds in all liquid cryptocurrency strategies previously managed by CoinFund. Those strategies now sit inside Franklin Templeton's infrastructure, not as a separate fund.
A New Division for Active Management
Franklin Crypto is structured as a dedicated division focused on active management for institutional clients. That's a different play from the passive ETF route many traditional firms have taken. Franklin Templeton already runs a spot bitcoin ETF, but this division gives it the ability to trade, rebalance, and run discretionary strategies — the kind of thing pension funds and endowments have been asking for but few legacy managers offer in-house.
CoinFund Strategies Folded In
CoinFund, the venture firm that incubated 250 Digital, is handing off its liquid trading strategies as part of the arrangement. Those strategies were previously run under the 250 Digital banner. Now they're part of Franklin Templeton's broader portfolio. The venture side of CoinFund remains independent, but the liquid assets are moving over entirely.
What Comes Next
Franklin Templeton hasn't said which specific strategies or products will launch first under Franklin Crypto. The next concrete step likely involves registering the new division's funds with the SEC — or making moves to onboard the first institutional clients. With the team and strategies already live, the question now is how fast the firm can scale distribution. A quiet period of a few weeks is typical while legal and compliance work gets finalized. The deal's close today clears that runway.
