Franklin Templeton files for two Bitcoin dividend ETFs

Franklin Templeton is seeking approval for two new exchange-traded funds that would use stock dividends to add Bitcoin exposure over time.

The global asset manager has filed with the US Securities and Exchange Commission for the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, according to Unfolded. Both funds are designed to put at least 80% of their assets into equity indexes, one tied to large-cap US stocks and the other to innovative companies.

Instead of buying more shares of those companies, the funds would reinvest dividends into Bitcoin-linked instruments. The exposure would come through exchange-traded products, futures and options. Franklin Templeton plans to keep the Bitcoin sleeve within a 5% to 20% band, with quarterly rebalancing aimed at a target of about 4.5%.

That structure gives the products a gradual path into Bitcoin rather than a direct allocation funded by selling stocks. For traditional investors who want crypto exposure without fully leaving equities, the setup is designed to make the transition easier. It also gives Franklin Templeton another way to package Bitcoin inside a familiar fund wrapper.

Both ETFs are brand new and have no operating history. Their effective date is set for Sept. 1, and that timeline now becomes the key point to watch. If the SEC allows the filings to move forward, the products would join a growing group of funds using regulated market instruments to bring Bitcoin into mainstream portfolios. If not, the launch could slip or come back in a revised form.