Franklin Templeton has completed a major piece of its cryptocurrency strategy by acquiring 250 Digital and establishing Franklin Crypto, a new division dedicated to actively managed cryptocurrency strategies for institutional investors like pension funds and sovereign wealth funds. This acquisition marks the final layer in a multi-year effort that began in 2018, transforming the $1.78 trillion asset manager into a comprehensive crypto asset manager.

What Is Franklin Templeton's Three-Layer Crypto Strategy?

Franklin Templeton's crypto product lineup now spans three distinct tiers, each serving different investor needs and risk profiles. The company has built this architecture deliberately over several years, starting with tokenized funds, expanding into passive exchange-traded funds (ETFs), and now adding active management capabilities.

• Tokenized Funds: The Franklin OnChain U.S. Government Money Fund (BENJI) launched in 2021 as the first registered U.S. mutual fund to use a public blockchain for transactions and record-keeping. As of mid-June 2026, BENJI holds approximately $831 million in assets under management and offers a 7-day annualized yield of 3.5%.
• Passive Crypto ETFs: Franklin Templeton offers five spot ETFs covering individual cryptocurrencies and a diversified index. Bitcoin ETF (EZBC) holds $368 million, Ethereum ETF (EZET) holds $34.62 million, XRP ETF (XRPZ) holds $252 million, Solana ETF (SOEZ) with staking functionality holds $8.19 million, and the Crypto Index ETF (EZPZ) holds $12.43 million.
• Active Management Strategies: The newly formed Franklin Crypto division, led by Christopher Perkins as head and Seth Ginns as Chief Investment Officer, will manage actively managed cryptocurrency strategies designed for institutional clients seeking professional portfolio management rather than passive index tracking.

The acquisition of 250 Digital brings the entire investment team and previously CoinFund-operated liquid crypto strategies under Franklin Templeton's roof. The company has committed to investing capital into these active strategies, signaling serious long-term commitment to this business line.

How Does Franklin Templeton's Approach Differ From Competitors?

While Franklin Templeton built its crypto presence through product diversification and strategic acquisitions, competitor Fidelity Investments took a fundamentally different path. Fidelity began researching Bitcoin and blockchain in 2014 and established Fidelity Digital Assets in 2018, focusing early on building proprietary custody and trading infrastructure rather than acquiring external teams.

This strategic difference has produced measurable results. Fidelity's Bitcoin Spot ETF (FBTC) holds over $11 billion in assets, significantly larger than Franklin Templeton's EZBC at $368 million. Fidelity also launched FIDD, an Ethereum-based stablecoin, with approximately 62.6 million tokens in circulation as of early 2026. With total assets under management of approximately $7 trillion as of the first quarter of 2026, Fidelity operates at a different scale than Franklin Templeton's $1.78 trillion.

Both approaches reflect a broader trend: traditional asset managers are deepening their involvement in cryptocurrency. Rather than treating crypto as a niche offering, these institutions are building comprehensive ecosystems that serve institutional clients seeking exposure to digital assets alongside traditional investments.

What Expansion Plans Does Franklin Templeton Have?

Franklin Templeton continues to expand its crypto footprint beyond ETFs and active management. In June 2026, the company filed applications with the Securities and Exchange Commission (SEC) to launch two Bitcoin dividend reinvestment plan (DRIP) ETFs. These products automatically reinvest stock dividends into Bitcoin, with an initial allocation of 95 percent U.S. large-cap stocks and 5 percent Bitcoin, with Bitcoin's maximum share capped at 20 percent. The SEC is expected to approve these products as early as September 2026.

Beyond ETFs, Franklin Templeton has invested in the broader crypto ecosystem. In 2025, the company participated in funding for Ethena, a decentralized protocol that issues USDe, a synthetic dollar stablecoin. The company also invested in Crossmint, a crypto application programming interface (API) developer providing nonfungible token (NFT) and wallet infrastructure for enterprises. Franklin Templeton has established partnerships with blockchain networks including Aptos, where its on-chain Treasury fund BENJI went live in 2025, and maintains cooperative relationships with the Sui ecosystem.

As of the end of 2025, Franklin Templeton's digital assets division managed approximately $1.8 billion in assets. While this represents a fraction of the firm's $1.78 trillion total assets under management, the rapid expansion of products and strategic investments suggests the company views crypto as a core growth area for institutional asset management.

The acquisition of 250 Digital and launch of Franklin Crypto represent the maturation of Franklin Templeton's crypto strategy. By combining tokenized funds, passive ETFs, and now active management under one institutional framework, the company is positioning itself to serve the full spectrum of institutional investor needs in cryptocurrency, from conservative exposure through index funds to sophisticated strategies managed by experienced portfolio managers.