Franklin Templeton Files for BTC Dividend-Channeling ETFs

Franklin Templeton is pushing into Bitcoin investments with two new exchange-traded funds that channel equity dividends directly into BTC. The company filed for the funds, called Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF, which will track a VettaFi index with at least 95% in stocks and 5% in Bitcoin.

The funds will use dividend reinvestment plans (DRIPs) to route equity dividends into Bitcoin. They'll keep at least 80% of net assets in their target index plus a matching Bitcoin sleeve, which could be comprised of exchange-traded products, futures, options, or depositary receipts. The filing shows that both funds could take effect as early as Sept. 1, 2026.

The equity fund will track the VettaFi US Large-Cap 500 Bitcoin DRIP Index, which includes the 500 largest U.S. companies and their common stocks and REITs. The innovation version will follow a related variant weighted toward newer firms. Quarterly rebalances will trim Bitcoin back toward 4.5% once it tops 5%, with a 20% ceiling between resets.

This move is part of Franklin Templeton's wider crypto effort, which includes its spot Bitcoin ETF, EZBC, tracking near $358.9 million in net assets and about $329.6 million in cumulative inflows.