Franklin Templeton Files for ETF That Reinvests Stock Dividends into Bitcoin

TechFlow News, June 19: Franklin Templeton has filed applications with the U.S. Securities and Exchange Commission (SEC) for multiple ETFs. These proposed products will reinvest stock dividends into Bitcoin, namely the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF. The ETFs are expected to become effective as early as September 1, 2026.

These two ETFs will track the VettaFi US Large-Cap 500 Bitcoin DRIP Index and its related innovation index. Their initial allocation will be 95% U.S. large-cap equities and 5% Bitcoin. During quarterly rebalancing, if Bitcoin’s weight exceeds 5%, it will be adjusted down to 4.5%; Bitcoin’s maximum weight will not exceed 20%. Bitcoin exposure will be achieved through spot Bitcoin ETPs, futures, options, and other instruments.