Franklin Templeton files ETFs to reinvest dividends into Bitcoin
Franklin Templeton filed with the SEC on June 18 to add two ETFs that would reinvest U.S. equity dividends into Bitcoin, tracking VettaFi indexes with a 95% equity, 5% Bitcoin start.
Franklin Templeton on June 18 amended its SEC registration to add two proposed exchange-traded funds that would route dividends from U.S. equities into Bitcoin-related exposures. The funds are named Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF and would track indexes developed by VettaFi with an initial allocation of 95% equities and 5% Bitcoin.
The Franklin US Equity Bitcoin DRIP Index ETF would follow the VettaFi US Large-Cap 500 Bitcoin DRIP Index, drawn from the largest 500 U.S. companies by market capitalization and weighted by float-adjusted market cap with limits on individual and aggregate concentrations. The filing notes that index contained 498 securities as of April 30, 2026. The Franklin US Innovation Bitcoin DRIP Index ETF would track the VettaFi US Innovation 100 Bitcoin DRIP Index, based on the 100 largest Nasdaq-listed U.S. companies after excluding firms classified as finance companies and applying screens for liquidity, trading volume and public float.
Under the index rules, dividend proceeds from the equity portion would be systematically reinvested into Bitcoin exposure rather than paid out. The prospectus allows the funds to obtain Bitcoin exposure through crypto-linked exchange-traded vehicles, futures, options and other securities tied to Bitcoin’s price. The documents also allow the use of a wholly owned Cayman Islands subsidiary to hold certain digital-asset exposures when appropriate.
The filing says the funds would track their benchmarks using a passive approach, either by holding all index constituents or by employing sampling designed to replicate index performance. The registration documents state: “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.” The Bitcoin allocation could rise over time as dividend proceeds are redirected into Bitcoin-linked instruments.
The proposals are pending SEC review and must be declared effective before the ETFs can launch and begin trading.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
