Franklin Templeton files ETFs to reinvest dividends into bitcoin

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Franklin Templeton bitcoin ETFs

Highlights

Franklin Templeton filed for two ETFs on Thursday—Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF—that reinvest stock dividends into bitcoin.
The ETFs will track VettaFi indexes, start with 95% U.S. large-cap equities and 5% bitcoin, and rebalance quarterly to maintain a maximum 5% bitcoin allocation, with a 20% intra-quarter cap.
Franklin Templeton's spot bitcoin ETF EZBC holds $358.9 million in net assets, while the firm expands crypto efforts via Kraken partnership and integration of tokenized products with MoonPay Trade.

Filing outlines dividend-to-bitcoin structure

The Block reports that Franklin Templeton has registered two new ETFs, Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF, in a Thursday filing. The documents show the products are built to automatically reinvest dividends from underlying stock holdings into bitcoin through bitcoin exchange-traded products, futures, options or other instruments.

The filing says the funds are set to track the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index and an innovation-focused variant. The strategy is designed to start with a 95% allocation to U.S. large-cap equities and a 5% allocation to bitcoin, while quarterly rebalances would cut bitcoin exposure back to 4.5% if it rises above 5%; a 20% cap applies between rebalances.

As of April 30, the equity index includes about 498 securities with market capitalizations ranging from $7.5 billion to $4.9 trillion. The filing indicates the ETFs could launch as early as Sept. 1, 2026.

Broader crypto expansion gains pace

The proposed products mark Franklin Templeton's latest move to broaden its digital-asset and tokenized investment business. Its spot bitcoin ETF, EZBC, holds $358.9 million in net assets and has recorded $329.6 million in cumulative net inflows as of Thursday, according to SoSoValue data.

Franklin Templeton also deepens its activity beyond exchange-traded products. In May, it enters a partnership with Payward, the parent company of crypto exchange Kraken, to explore tokenization of traditional investment products, and earlier this month it says it is integrating its BENJI tokenized money market fund and other tokenized offerings into MoonPay Trade for institutional users.

Blackstone’s push into private credit was a key focus in our earlier coverage, highlighting the launch of SablePointe Credit Strategies and the appointment of James Garlick to lead growth in direct lending. We also noted Blackstone’s role in the Medallia takeover and recapitalization, while its shares stayed under bearish technical pressure and were expected to trade in a near-term consolidation range.

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