Franklin Templeton Seeks SEC Approval for Two Bitcoin Dividend-Reinvesting ETFs

Franklin Templeton has filed with the Securities and Exchange Commission (SEC) to launch two exchange-traded funds (ETFs) that reinvest dividends into Bitcoin.

The funds, which track new VettaFi 'Bitcoin DRIP' indices, hold a basket of U.S. stocks and systematically reinvest the dividends those companies pay into Bitcoin, rather than back into the shares.

Each underlying index starts with a 5% Bitcoin weighting and 95% equities, per the filing, with Bitcoin exposure capped at 20% and trimmed back at quarterly rebalances.

The funds would gain that exposure through crypto exchange-traded products, including Bitcoin ETPs sponsored by Franklin Templeton affiliates, along with options and futures, and in some cases through a wholly-owned subsidiary in the Cayman Islands.