Franklin Templeton files two Nasdaq ETFs that turn stock dividends into bitcoin

Franklin Templeton ETF Trust has filed to launch two exchange-traded funds that hold US stocks alongside a 5% bitcoin allocation, according to a post-effective amendment filed with the SEC on 22 Oct. The Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin US Innovation Bitcoin DRIP Index ETF (FIBT) will list on Nasdaq, and the filing becomes effective on 27 Oct.

The bitcoin share is designed to grow only between reviews. Each quarter, if bitcoin is above 5% of the index it is cut to 4.5%; if it is 5% or less it is left alone. A separate cap applies between reviews: if bitcoin passes 20% at any close, it is reset to 4.5% two business days later.

“All regular and special dividends are reinvested into bitcoin at the market open on the day following the dividend ex-date, which increases bitcoin exposure over time,” the prospectus says. FBEQ tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, built on 499 large US companies as of 30 Sep. FIBT tracks a bitcoin version of the VettaFi US Innovation 100 Index of large US companies.

The funds will not necessarily hold bitcoin directly. The filing lets them use bitcoin ETPs, including ones sponsored by Franklin affiliates, as well as options, futures and depositary receipts, possibly through a Cayman Islands subsidiary, and Franklin’s adviser has voluntarily agreed to waive part of its fee to offset fees on affiliated ETPs the funds hold. For how the underlying products work, see what a spot bitcoin ETF is.

Source: Franklin Templeton ETF Trust Form 485BPOS, 22 Oct 2026.

Dina Ting and Hailey Harris are named as portfolio managers. The prospectus is dated 27 Oct and does not give a first trading date.

This article is for information only and is not investment advice.