Franklin Templeton files for ETFs that reinvest stock dividends into bitcoin
Asset manager Franklin Templeton has filed for two new exchange-traded funds that would reinvest stock dividends into bitcoin.
The firm's Thursday filing shows that Franklin is registering two ETFs — Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF — with an expected effective date as early as Sept. 1, 2026.
The funds are designed to track the VettaFi US Large-Cap 500 Bitcoin DRIP Index and a related innovation variant. Under the mechanism, dividends from the underlying equity holdings would be systematically reinvested in bitcoin. Bitcoin exposure would be achieved through bitcoin exchange-traded products, futures, options, or other instruments, per the filing.
Specifically, the index is designed to launch with a 95% allocation to U.S. large-cap equities and a 5% allocation to bitcoin. During quarterly rebalances, bitcoin exposure above 5% would be reduced to 4.5%, while an overall cap of 20% would apply between rebalances, according to the filing.
As of April 30, the equity index held approximately 498 securities, with market caps ranging from $7.5 billion to $4.9 trillion, per the filing.
The filing is the latest move in Franklin's broader crypto push. Its spot bitcoin ETF (EZBC) held $358.9 million in net assets and recorded $329.6 million in cumulative net inflows as of Thursday.
In May, Franklin Templeton entered into a partnership with Payward, the parent company of crypto exchange Kraken, to explore new ways to tokenize traditional investment products.
Earlier this month, Franklin said it is integrating its BENJI tokenized money market fund and other tokenized products into MoonPay Trade, allowing institutional users to swap between stablecoins like USDC and USDT and Franklin's tokenized fund via MoonPay's onchain trading infrastructure.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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