Franklin Templeton Files ETFs Converting Stock Dividends into Bitcoin Exposure
On June 18, Franklin Templeton put forward plans to the U.S. Securities and Exchange Commission (SEC) for two new exchange-traded funds (ETFs) aimed at boosting Bitcoin investment via dividends from U.S. stocks. The Franklin U.S. Equity Bitcoin DRIP Index ETF will focus on large-cap companies, while the Franklin U.S. Innovation Bitcoin DRIP Index ETF will target innovative sectors. Initially, both funds will invest about 95% in stocks and 5% in Bitcoin, reinvesting dividends into Bitcoin after the ex-dividend date. Bitcoin will have a maximum exposure of 20%, with quarterly adjustments if it exceeds 5%. As of May 31, 2026, Franklin Templeton managed $1.78 trillion and has been offering the Franklin Bitcoin ETF (EZBC) since January 11, 2024, with $358.90 million in assets. The new ETFs may launch by September 1, but information on management fees and trading is still awaited.
Key facts
- Franklin Templeton filed two ETF proposals with the SEC on June 18.
- The ETFs use stock dividends to buy Bitcoin exposure instead of reinvesting in equities.
- Initial allocation: 95% U.S. equities, 5% Bitcoin.
- Bitcoin weight cannot exceed 20% of the portfolio.
- Quarterly rebalancing reduces Bitcoin to 4.5% if above 5%.
- Bitcoin exposure via ETPs, futures, options, depositary receipts, or a Cayman Islands subsidiary.
- Franklin Templeton managed $1.78 trillion as of May 31, 2026.
- Franklin Bitcoin ETF (EZBC) launched January 11, 2024, with $358.90 million in net assets.
Entities
Institutions
- Franklin Templeton
- U.S. Securities and Exchange Commission (SEC)
- Franklin Bitcoin ETF (EZBC)
- Franklin Resources
- VettaFi
Locations
- United States
- Cayman Islands