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One of the world’s largest investment management firms, Franklin Templeton, which holds $1.8 trillion in assets under management, has submitted updated regulatory filings with the U.S. Securities and Exchange Commission (SEC) to launch two novel exchange-traded funds (ETFs) on the Nasdaq.
The proposed funds—the Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin US Innovation Bitcoin DRIP Index ETF (FIBT)—are structured to provide traditional U.S. stock exposure while systematically channeling dividend income into Bitcoin.
How the ETFs Will Turn Stock Dividends Into Bitcoin Exposure
Unlike standard spot Bitcoin ETFs, the proposed strategy uses Dividend Reinvestment Plans (DRIP) to build cryptocurrency allocation over time. Both funds follow a rules-based index methodology.
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Each fund begins with a baseline mix of 95% U.S. equities and 5% Bitcoin exposure. Regular and special cash dividends generated by the underlying portfolio stocks are systematically converted into Bitcoin exposure on the market open following the ex-dividend date.
To control risk, total Bitcoin exposure is capped at 20%. During quarterly rebalancing, if market growth pushes the Bitcoin portion above 5%, the allocation is reset back to 4.5%.
ETF Fees, Stock Holdings and Bitcoin Exposure
The two proposed vehicles target different segments of the U.S. equity market.
Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) tracks a large-cap benchmark of the 500 largest U.S. companies and carries an annual operating expense ratio of 0.09%.
Franklin US Innovation Bitcoin DRIP Index ETF (FIBT) focuses on 100 top Nasdaq-listed growth companies (excluding financial firms) with an annual fee of 0.19%.
The prospectuses outline that the funds may gain Bitcoin exposure through exchange-traded products, futures contracts, options, and depositary receipts rather than holding spot Bitcoin directly in all instances.
SEC Filing Sets October 27 Effective Date
The filing sets an expected effective date of October 27, 2026. However, an effective prospectus registration does not guarantee immediate public trading, as market launch remains subject to final clearing processes.
Founded in 1947, Franklin Templeton remains one of the largest financial institutions bringing hybrid digital-asset products to traditional stock market investors.
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