Key facts
- The ETFs will reinvest dividends from U.S. stocks into Bitcoin.
- Bitcoin allocation is capped at 20% and cut back to 4.5% if above 5%.
- Both ETFs have a management fee of 0.09%.
Franklin Templeton, a global asset manager with $1.8 trillion in assets under management, has received approval from Nasdaq to list two new Bitcoin Exchange Traded Funds (ETFs) that will incorporate a dividend reinvestment plan (DRIP) strategy. The ETFs, named Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF, will trade under the tickers FBEQ and FIBT, respectively. These products are designed to systematically convert dividends from U.S. stocks into Bitcoin exposure. The investment strategy begins with 95% allocated to U.S. stocks, either from a large-cap 500 universe or a Nasdaq-focused innovation list, with the remaining 5% in Bitcoin-related instruments. Dividends will be directed into Bitcoin exposure on the day after each ex-dividend date, with the Bitcoin weight capped at 20% and any allocation above 5% being cut back to 4.5%. Both ETFs will carry a management fee of 0.09%. Franklin Templeton's existing spot Bitcoin ETF, EZBC, has seen $335 million in total inflows to date.