Franklin Templeton registers two new dividend reinvestment exchange-traded funds on Nasdaq, scheduled to launch on October 27, 2026. The Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF allocate 95% of assets to U.S. stocks and 5% to Bitcoin at inception, automatically converting stock dividend payments into Bitcoin exposure. The manager of $1.8 trillion previously launched the EZBC spot fund in January 2024.
Dividend reinvestment mechanism
- ▪The Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF automatically reinvest stock dividends into Bitcoin-related assets on the market open following the ex-dividend date
- ▪The Franklin US Equity Bitcoin DRIP Index ETF routes dividend payments from large-cap U.S. companies into recurring Bitcoin exposure without requiring investors to hold direct cryptocurrency wallets or exchange accounts
FBEQ portfolio composition
- ▪The Franklin US Equity Bitcoin DRIP Index ETF, trading under ticker FBEQ, carries a 0.09% expense ratio and allocates 95% of its portfolio to U.S. stocks and 5% to Bitcoin at inception
- ▪The Franklin US Equity Bitcoin DRIP Index ETF tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, which held 499 stocks across U.S. market capitalization sectors as of September 30, 2026
Bitcoin allocation rebalancing rules
- ▪The Franklin US Equity Bitcoin DRIP Index ETF reduces its Bitcoin share to 4.5% within two business days if Bitcoin exceeds 20% of the total index between quarterly rebalances
- ▪The Franklin US Equity Bitcoin DRIP Index ETF trims its Bitcoin allocation back to 4.5% during quarterly rebalances whenever the Bitcoin share exceeds 5% of the index
Franklin Templeton digital asset background
- ▪Asset manager Franklin Templeton, which manages $1.8 trillion in assets, launched the EZBC spot Bitcoin ETF in January 2024, attracting cumulative net inflows of approximately $335 million
- ▪Franklin Templeton acquired 250 Digital in April to establish Franklin Crypto as an institutional digital asset division
SEC filings and registration
- ▪Franklin Templeton submitted initial filings for the Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF in June without tickers or fees
- ▪Franklin Templeton filed Form 8-A with the Securities and Exchange Commission on October 22, 2026 to register the Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF on Nasdaq, effective October 27, 2026
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