Franklin Templeton has filed with the Securities and Exchange Commission to launch two exchange-traded funds that reinvest equity dividends directly into Bitcoin. The Franklin U.S. Equity Bitcoin DRIP Index ETF and the Franklin U.S. Innovation Bitcoin DRIP Index ETF are designed to accumulate digital assets using cash flows from traditional stocks rather than redirecting capital back into equities.
The funds track new VettaFi indices and begin with a 5% Bitcoin weighting alongside 95% equities. Bitcoin exposure is capped at 20% and adjusted during quarterly rebalances. The strategy repurposes traditional dividend reinvestment plans to systematically build cryptocurrency positions over time.
Exposure will be achieved through crypto exchange-traded products, options, futures, and a Cayman Islands subsidiary. As the filing is preliminary, fee structures remain undisclosed. Under current regulations, the funds could launch as early as September.
This development signals a broader industry pivot beyond plain spot Bitcoin exposure. Analysts project more than 100 crypto-linked ETFs will enter the market in 2026 as issuers compete on structure and yield. Franklin Templeton continues its aggressive digital asset expansion, having recently established a dedicated crypto division and launched tokenized money-market funds across multiple blockchains.