Franklin Templeton Files Bitcoin DRIP ETFs for Nasdaq

Franklin Templeton has filed for two stock-and-Bitcoin ETFs, the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, to be listed on Nasdaq. The filing, submitted on October 22, is a registration step and does not indicate that trading has commenced. The ETFs aim to combine a US stock portfolio with automatic Bitcoin exposure through a dividend reinvestment strategy, maintaining Bitcoin as a minority allocation. The effective date for the funds is proposed for October 27, with ticker symbols FBEQ for the equity version and FIBT for the innovation version, and annual management fees of 0.09% and 0.19%, respectively. The strategy involves reinvesting dividends into Bitcoin while periodically rebalancing to keep Bitcoin's weight below 5%. If Bitcoin's weight exceeds 20%, it will be reset to 4.5% after a specified period. The funds can utilize Bitcoin-linked products and derivatives, allowing shareholders to own ETF shares rather than direct Bitcoin. This approach differs from Franklin's existing Bitcoin ETF, EZBC, which directly holds Bitcoin and cash. The next step is for the funds to become effective and open for trading.

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