
Franklin Templeton files two Bitcoin DRIP ETFs
- Franklin Templeton has proposed two ETFs that combine US stock exposure with systematic Bitcoin allocations.
- The funds would reinvest stock dividends into Bitcoin-related investments rather than additional equities.
- The structure could increase Bitcoin exposure over time while maintaining diversified equity holdings.
Franklin Templeton has filed plans with the US Securities and Exchange Commission for two exchange-traded funds that combine US equities with Bitcoin (CRYPTO:BTC) exposure through dividend reinvestment.
The proposed Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF would begin with allocations of 95% equities and 5% Bitcoin exposure.
“The underlying index includes an allocation to bitcoin that is achieved by systematically reinvesting dividends from the equity securities in the underlying index into bitcoin,” Franklin Templeton stated in its filing.
The funds would track indexes developed by VettaFi and gain Bitcoin exposure through instruments including crypto-linked exchange-traded products, futures, options and other securities tied to Bitcoin's price, while the structure also permits the use of a Cayman Islands subsidiary for certain digital asset holdings.
Under the proposed methodology, dividend income would be directed into Bitcoin-related investments over time, potentially increasing the cryptocurrency allocation while preserving broad stock market exposure. Following the announcement the Franklin Templeton share price was unchanged at $0.00.
The Franklin US Equity Bitcoin DRIP Index ETF would track an index based on approximately 500 of the largest US companies by market capitalisation, with the benchmark containing 498 securities as of April 30, 2026.
The Franklin US Innovation Bitcoin DRIP Index ETF would track an index of 100 large Nasdaq-listed companies excluding financial firms, as asset managers continue developing products that combine traditional equity exposure with cryptocurrency-linked investment strategies.
At the time of reporting, Bitcoin price was $64,176.42.