Franklin Templeton Eyes Sept. 1 Launch For Bitcoin Dividend ETFs

Franklin Templeton filed for two exchange-traded funds that would steer stock dividends into Bitcoin (BTC), with both set to launch as early as Sept. 1.

Key Points:

Franklin Templeton Bitcoin Filing

The asset manager submitted the paperwork Thursday with the Securities and Exchange Commission. The registration sets up two funds, the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF.

Both lean on a dividend reinvestment plan, the source of the DRIP label. The funds would keep at least 80% of net assets in their target index plus a matching Bitcoin sleeve. Each could turn effective roughly 75 days after the submission, as early as Sept. 1.

That Bitcoin exposure would come through exchange-traded products, futures, options, or depositary receipts, including bitcoin ETPs sponsored by Franklin affiliates. Part of it could sit inside a wholly owned Cayman Islands subsidiary.

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VettaFi Index Mechanics

The equity fund would track the VettaFi US Large-Cap 500 Bitcoin DRIP Index, drawn from the 500 largest U.S. companies and their common stocks and REITs. The innovation version would follow a related variant weighted toward newer firms. Each index opens with 95% in stocks and 5% in Bitcoin.

Quarterly rebalances would trim Bitcoin back toward 4.5% once it tops 5%, with a 20% ceiling between resets to keep the token a secondary holding.

Franklin Crypto Push

One analysis noted that the design lets traditional investors gather Bitcoin exposure without selling their stocks. As of Apr. 30, the equity index held roughly 498 securities, with market values from $7.5 billion to $4.9 trillion.

The move extends a wider crypto effort at the firm. Its spot Bitcoin ETF, EZBC, tracks near $358.9 million in net assets and about $329.6 million in cumulative inflows, recent data shows. Franklin also partnered with Payward, parent of exchange Kraken, in May and folded its BENJI tokenized fund into MoonPay Trade this month.

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