Franklin Templeton, a global asset management company, has filed to launch two exchange-traded funds (ETFs) that would automatically reinvest stock dividends into Bitcoin (BTC). According to the documents, the funds could launch as early as September 1, 2026.
The two proposed ETFs are the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF. DRIP stands for dividend reinvestment plan, a strategy traditionally used to increase stock holdings. In this case, however, the mechanism is reconfigured to support Bitcoin accumulation.
How the New Franklin Templeton ETFs Are Structured
The funds will track the VettaFi US Large-Cap 500 Bitcoin DRIP Index and a related innovation-focused index. Instead of being reinvested back into securities, dividends from the funds’ equity holdings will be systematically invested in BTC.
The funds will gain exposure to Bitcoin through exchange-traded products (ETPs) tied to the leading cryptocurrency, as well as futures, options, and other instruments.
At launch, the index will allocate 95% of its assets to large-cap U.S. stocks and 5% to Bitcoin. During quarterly rebalancing, any BTC allocation above 5% will be reduced to 4.5%, while a 20% cap will apply between rebalancing periods.
As of April 30, the benchmark stock index included approximately 498 stocks, with market capitalizations ranging from $7.5 billion to $4.9 trillion. This means the funds would offer investors exposure to a broad basket of U.S. equities while gradually building Bitcoin exposure through dividends.
Part of Franklin Templeton’s Broader Crypto Strategy
The filing marks another step in Franklin Templeton’s broader crypto strategy. The company’s spot Bitcoin ETF, EZBC, holds $358.9 million in net assets and has attracted $329.6 million in total inflows.
In May, Franklin Templeton partnered with Payward, the parent company of the crypto exchange Kraken, to explore new ways to tokenize traditional investment products. Tokenization refers to the issuance of digital equivalents of real-world assets on a blockchain.
Earlier this month, the company also announced the integration of its tokenized money market fund, BENJI, and other products into MoonPay Trade. This will allow institutional users to exchange USDC and USDT stablecoins for the tokenized Franklin fund through MoonPay’s infrastructure.
