Franklin Templeton files for two ETFs that reinvest dividends into Bitcoin

Franklin Templeton has filed with the SEC for two exchange-traded funds (ETFs) that reinvest stock dividends into Bitcoin. The funds would start at 95% U.S. equities and 5% Bitcoin, with a possible launch in September 2026.Key facts Franklin Templeton filed for two ETFs that reinvest stock dividends into Bitcoin.Each fund would start at 95% U.S. equities and 5% Bitcoin.The funds could launch as early as September 1, 2026, pending SEC review.Franklin Templeton files two dividend-to-Bitcoin ETFs with the SECFranklin Templeton filed a Form N-1A registration statement with the U.S. Securities and Exchange Commission (SEC) for two new exchange-traded funds (ETFs). Franklin Templeton ranks among the world's largest asset managers. The Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF would reinvest stock dividends into Bitcoin rather than return them as cash. "DRIP" refers to a dividend reinvestment plan, repurposed here to accumulate Bitcoin instead of more shares. The firm already operates a U.S. spot Bitcoin ETF that held about $359 million in assets in mid-June. Each fund would start at 95% equities, 5% BitcoinEach fund would launch with 95% in U.S. large-cap equities and 5% in Bitcoin exposure. The Bitcoin allocation would come through exchange-traded products, futures, options, or a wholly owned Cayman Islands subsidiary. The first fund tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, while the second focuses on growth companies. As of April 30, the equity index held about 498 securities, with market values from $7.5 billion to $4.9 trillion. Quarterly rebalancing would cap Bitcoin at 20%The index methodology sets controls on the Bitcoin sleeve. Dividends flow into the Bitcoin sleeve instead of returning to shareholders or buying more stock. During quarterly rebalances, a Bitcoin allocation above 5% would be trimmed to 4.5%. Between rebalances, total Bitcoin exposure is capped at 20% to keep equities as the core holding. The design keeps U.S. stocks as the primary holding while steadily adding Bitcoin. Funds could launch as early as September 2026If the registration becomes effective, the funds could begin trading as early as September 1, 2026. Franklin Templeton plans the launch as a target date, not a commitment, and has not disclosed fees, tickers, or listing exchanges. The SEC must still declare the filing effective before either fund can trade. The proposal follows the SEC's adoption of generic listing standards for crypto-linked funds in late 2025, which opened the door to a wider range of Bitcoin ETF designs. Asset managers have since filed dozens of structured crypto products that move beyond plain spot exposure. Primary source: Source ↗Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment.All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions.Coinpaprika is not liable for any losses resulting from the use of this information.