Franklin Templeton Files ETFs That Turn Stock Dividends into Bitcoin

Franklin Templeton has filed two new exchange-traded funds (ETFs) that would convert US stock dividends into Bitcoin exposure, a structure effectively turning every quarterly payout from Apple, Microsoft, or ExxonMobil into a rules-based Bitcoin DCA purchase.

The two proposed funds, the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, each start with a 95% equity and 5% bitcoin allocation. The underlying index includes an allocation to bitcoin that is achieved by systematically reinvesting dividends from the equity securities in the underlying index into bitcoin.

This means every time a constituent stock pays a dividend, regular or special, that cash is aggregated and used to buy bitcoin-linked instruments at the market open on the next business day after the ex-dividend date. The bitcoin sleeve is capped at 20% between quarterly rebalances, with any gains harvested systematically rather than allowed to run unchecked.