Franklin Templeton Unveils 'DRIP' ETFs That Reinvest Dividends into Bitcoin

Franklin Templeton, a global asset manager, has filed two new ETFs that would automatically reinvest stock dividends into Bitcoin. The proposed Franklin U.S. Equity Bitcoin DRIP Index ETF and Franklin U.S. Innovation Bitcoin DRIP Index ETF combine traditional equity exposure with a systematic Bitcoin accumulation strategy.

The funds will track either the VettaFi U.S. Large-Cap 500 Index or the VettaFi U.S. Innovation 100 Index, starting with a portfolio allocation of 95% equities and 5% Bitcoin exposure. The Bitcoin exposure can rise through dividend reinvestment but is capped at 20%. Portfolio weights would be reset during quarterly rebalances.

The filing does not yet disclose management fees. Under the filing framework used by Franklin, the funds could potentially launch in early September. This marks another step in the rapidly evolving crypto ETF market, which has seen issuers focus on income-generating and structured strategies.