Asset manager Franklin Templeton has filed for two new exchange-traded funds that would reinvest stock dividends into bitcoin.
The firm's Thursday filing shows that Franklin is registering two ETFs — Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF — with an expected effective date as early as Sept. 1, 2026.
The funds are designed to track the VettaFi US Large-Cap 500 Bitcoin DRIP Index and a related innovation variant. Under the mechanism, dividends from the underlying equity holdings would be systematically reinvested in bitcoin. Bitcoin exposure would be achieved through bitcoin exchange-traded products, futures, options, or other instruments, per the filing.
Specifically, the index is designed to launch with a 95% allocation to U.S. large-cap equities and a 5% allocation to bitcoin. During quarterly rebalances, bitcoin exposure above 5% would be reduced to 4.5%, while an overall cap of 20% would apply between rebalances, according to the filing.
As of April 30, the equity index held approximately 498 securities, with market caps ranging from $7.5 billion to $4.9 trillion, per the filing.
