Franklin Templeton has submitted a filing to the SEC for two ETFs designed to automatically reinvest stock dividends into Bitcoin exposure. The two proposed funds are named the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF. According to the filing information, the earliest expected effective date for the two ETFs is September 1, 2026.
Two proposed ETFs tied to VettaFi indexes
The Franklin US Equity Bitcoin DRIP Index ETF is set to track the VettaFi US Large-Cap 500 Bitcoin DRIP Index. The Franklin US Innovation Bitcoin DRIP Index ETF will track a related innovation index. Both products use a structure that combines U.S. equity exposure with Bitcoin exposure inside an ETF framework, while applying a dividend reinvestment approach that directs stock dividends into Bitcoin-related exposure.
The initial allocation stated in the filing is 95% U.S. large-cap equities and 5% Bitcoin for both ETFs. This allocation serves as the starting point for the products and provides the reference level for the rebalancing rules described in the filing. No other initial allocation percentages are listed in the provided filing summary.
Quarterly rebalancing and Bitcoin exposure limits
The filing also sets out quarterly rebalancing rules. If the Bitcoin allocation exceeds 5% at the time of quarterly rebalancing, the Bitcoin share will be adjusted down to 4.5%. The filing further states that Bitcoin exposure in the two ETFs will be capped at no more than 20%. These rules define the stated range within which Bitcoin exposure may be adjusted inside the products.
For implementation, Franklin Templeton lists several instruments that may be used to obtain Bitcoin exposure. The filing states that exposure will be achieved through spot Bitcoin ETPs, futures, options and other tools. Under the proposed structure, the Bitcoin component is therefore built through the instruments identified in the filing rather than being described as relying on only one type of instrument.