Franklin Templeton Deepens Crypto Investment

Global asset manager Franklin Templeton is expanding its presence in the cryptocurrency market through the acquisition of 250 Digital, a spinoff from crypto investment firm CoinFund. The deal, announced on Wednesday, will establish Franklin Crypto, a dedicated unit targeting institutional investors interested in digital assets.

CoinFund's Strategic Spinoff

CoinFund initiated the spinoff of its liquid strategies business as 250 Digital earlier in the year. This strategic move allowed CoinFund to concentrate its efforts on venture investing within the crypto space.

Leadership and Structure of Franklin Crypto

Christopher Perkins will lead the newly formed Franklin Crypto. Seth Ginns will serve as chief investment officer, working alongside Tony Pecore, a veteran in digital assets at Franklin Templeton. This leadership team will focus on broadening the company’s crypto investment platform for institutional clients.

Deal Details and Scope

The acquisition encompasses the entire 250 Digital investment team and all liquid cryptocurrency strategies previously managed by CoinFund. Franklin Templeton will also invest in these strategies as part of the agreement. The financial terms of the transaction were not disclosed.

Transaction Timeline

The transaction is anticipated to be finalized in the second quarter of 2026, contingent upon the completion of definitive agreements, necessary client approvals, and standard closing conditions.

Franklin Templeton's Existing Digital Asset Portfolio

Currently, Franklin Templeton’s digital asset division manages approximately $1.8 billion in assets. The firm has been actively building its presence in the crypto industry since 2018, establishing itself as a significant institutional player.

Market Conditions and Strategic Timing

The acquisition occurs during a period of market downturn, with Bitcoin experiencing a roughly 45% decrease from its peak above $126,000. Despite this, Franklin Templeton views the current environment as an opportune time for growth and talent acquisition. “This big selloff that we had in the crypto markets is creating a very unique opportunity that really made us all decide that this is the right time to pull the trigger,” said Kaul.

Franklin Templeton and Ondo recently announced plans to launch tokenized ETFs with 24/7 trading capabilities through crypto wallets.