Franklin Templeton files for ETFs to reinvest stock dividends into Bitcoin

Global asset manager Franklin Templeton has filed with the U.S. Securities and Exchange Commission for two new exchange-traded funds designed to reinvest stock dividends into Bitcoin. The proposed funds, the Franklin U.S. Equity Bitcoin DRIP Index ETF and the Franklin U.S. Innovation Bitcoin DRIP Index ETF, aim to track new VettaFi indices. These indices will hold a basket of U.S. equities and systematically reinvest the dividends paid by these companies into Bitcoin, rather than back into the stocks. The funds' structure, with 'DRIP' referring to dividend reinvestment plans, starts with a 95% allocation to equities and 5% to Bitcoin. Bitcoin exposure is capped at 20% and will be trimmed back during quarterly rebalances. Franklin Templeton also recently announced the formation of its dedicated crypto unit, Franklin Crypto, following its acquisition of 250 Digital, a crypto investment firm spun out of CoinFund. The firm already operates a spot Bitcoin ETF, EZBC, which held $358.9 million in net assets as of Thursday. The ETFs could become effective as early as September 1, 2026.