Franklin Templeton files ETFs that turn stock dividends into Bitcoin exposure
Franklin Templeton filed for two ETFs that would turn stock dividends into Bitcoin exposure: the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF. Both are passive, rules-based funds tracking proprietary VettaFi indexes. They would start with about 5% Bitcoin exposure and 95% US equities, with dividends from stock holdings reinvested into the Bitcoin allocation and quarterly rebalances keeping exposure within set limits. The Equity ETF would follow a broad US large-cap index, while the Innovation ETF would track the 100 largest non-financial Nasdaq-listed companies. Bitcoin exposure could come through Bitcoin ETPs, futures, options, depositary receipts, and possibly a Cayman subsidiary. The filings reflect a broader trend of asset managers testing new Bitcoin-linked income and yield strategies, even as US spot Bitcoin ETFs have seen recent net outflows.
