Franklin Templeton unveils ETFs reinvesting dividends in Bitcoin
6.6 Investments Franklin Templeton filed for two ETFs that reinvest stock dividends into Bitcoin, maintaining 95% in U.S. equities and 5% in Bitcoin, with quarterly rebalancing and a planned launch in September 2026.
Franklin Templeton has filed for two innovative exchange-traded funds (ETFs) that will automatically reinvest stock dividends into Bitcoin exposure. The proposed funds, named the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, are designed to maintain a portfolio primarily invested in U.S. large-cap equities, starting with a 95% allocation to stocks and 5% to Bitcoin-linked assets. Dividends generated from the equity holdings will be systematically directed into Bitcoin exposure through instruments such as spot Bitcoin ETFs, futures, or options. Both ETFs will track VettaFi indexes and employ a rules-based strategy to rebalance quarterly, ensuring Bitcoin allocations remain at or below 5%. The anticipated launch date for these funds is September 1, 2026, pending regulatory approval. This filing represents a significant step in bridging traditional finance with digital assets, offering investors a novel way to gain steady Bitcoin exposure through equity income.
