Franklin Templeton Files for ETFs That Reinvest Stock Dividends Into Bitcoin

Jun 19, 2026

Global asset manager Franklin Templeton has filed with the SEC for two new ETFs that will reinvest stock dividends into Bitcoin. The funds, which track VettaFi indices, will start with a 5% Bitcoin allocation capped at 20%. This move is part of the firm's broader digital assets expansion and adds to a wave of over 100 crypto ETFs expected to launch in 2026 following new SEC listing standards.

Franklin Templeton Bitcoin DRIP ETFs

▪Asset manager Franklin Templeton filed with the U.S. Securities and Exchange Commission for two new exchange-traded funds (ETFs).
▪The funds could become effective around 75 days after the filing, with a potential launch in early September 2026.
▪The proposed ETFs are the Franklin U.S. Equity Bitcoin DRIP Index ETF and the Franklin U.S. Innovation Bitcoin DRIP Index ETF.

Dividend reinvestment into Bitcoin

▪The ETFs are designed to hold a basket of U.S. stocks and systematically reinvest the dividends those companies pay into Bitcoin.
▪The funds track new indices from VettaFi, one based on a U.S. large-cap 500 index and the other on a U.S. innovation 100 index.

Index composition with Bitcoin caps

▪The underlying indices are designed to launch with a 95% allocation to equities and a 5% allocation to Bitcoin.
▪Bitcoin exposure in the funds is capped at 20% between rebalances.
▪During quarterly rebalances, Bitcoin exposure above 5% would be reduced to 4.5%.

Crypto ETF market surge

▪The filing is part of a market trend, with analysts predicting more than 100 crypto ETFs could launch in 2026.
▪The surge in crypto ETF filings followed the SEC's publication of generic listing standards for crypto-linked funds in late 2025.

Franklin Templeton digital assets expansion

▪Franklin Templeton has also partnered with Payward, the parent company of crypto exchange Kraken, to explore tokenizing investment products.
▪The filing extends Franklin Templeton's push into digital assets, which includes its own spot Bitcoin ETF (EZBC).
▪Franklin Templeton's spot bitcoin ETF (EZBC) held $358.9 million in net assets as of June 19, 2026.