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Major investment trust franklin templeton has agreed to acquire small crypto investment firm 250 Digital, joining its newly formed Franklin Crypto division as the company ramps up its efforts in digital assets.
By bringing 250 in-house, Franklin Templeton expects to be able to increase its offering of actively managed crypto investments for institutional clients beyond basic exposure through products such as Bitcoin ETFs. The company manages $1.8 billion in global assets.
“The investment capabilities and differentiated strategies of both companies strengthen our capabilities in digital assets, position us among a small group of global asset managers with dedicated institutional-grade crypto investment management teams, and strengthen our ability to serve clients around the world,” Franklin Templeton CEO Jenny Johnson said in a statement.
The transaction is expected to close in the second quarter and will be paid in part using BENJI tokens, digital asset securities representing shares in Franklin Templeton’s blockchain-based mutual fund. Franklin OnChain US Government Fund.
The move is part of a broader trend of financial institutions favoring yield and sophisticated active strategies as passive crypto products (such as Spot Bitcoin and Ether ETFs) mature. This comes after CoinShares, an asset management firm specializing in cryptocurrencies, began trading on the Nasdaq on Wednesday.
Despite recent price suppression, appetite for cryptocurrencies by institutional investors is growing. Bitcoin’s October high reflects steady institutional buying, as evidenced by Bitcoin ETF inflows, as opposed to tracking individual momentum as in previous cycles. In March, there was an influx of black rock‘s iShares Bitcoin Trust ETF (IBIT) has risen again, ending a four-month streak of almost negligible outflows. Morgan Stanley also plans to launch its own spot Bitcoin ETF, after years of maintaining a mostly conservative stance on cryptocurrencies.
According to CoinMetrics, the price of Bitcoin has fallen 41% in the past six months and 21% this year.
Franklin Templeton has strong roots in active investing, making it one of the most progressive legacy finance firms when it comes to cryptocurrencies. Its footprint in digital assets spans crypto ETFs, traditional funds tokenized on public blockchains, and partnerships with major crypto industry platers like Binance.
