Franklin Templeton Launches ETFs That Automate Bitcoin Purchases

Franklin Templeton is taking a unique approach to helping investors buy into Bitcoin. The financial services company has filed for two new exchange-traded funds (ETFs) that will automatically convert dividend income from US stocks into Bitcoin-related assets.

The Bitcoin DRIP ETFs, set to launch in September 2026, start with about 95% of their holdings in US equities and 5% in Bitcoin-linked investments. This means that when the underlying stocks pay out dividends, those funds will be reinvested in Bitcoin. The maximum exposure to Bitcoin will be capped at 20%, according to the company.

This innovative structure is designed for investors who want to gain exposure to Bitcoin without actively buying it. By automatically converting dividend income into Bitcoin, these ETFs could create steady buying pressure over time. Franklin Templeton's move signals growing institutional interest in crypto-linked ETFs amid evolving US regulations.