Franklin Templeton's New ETFs Could Create a Bitcoin Buying Machine

For decades, index funds have used dividends to buy more stock. Franklin Templeton wants to use them to buy Bitcoin (BTC) instead. The asset manager has filed for two Nasdaq-listed funds, each starting with 95% stocks and 5% Bitcoin exposure. Neither has launched yet. Why does this matter for Bitcoin? Index funds invest in baskets of major company stocks. When those companies pay dividends, or cash rewards to shareholders, the money usually goes back into buying more stocks. Franklin Templeton wants to use that money to buy Bitcoin exposure instead, creating a regular source of BTC demand. How Would a Stock Dividend Become Bitcoin? One fund holds the 500 largest US companies. The other holds the 100 biggest Nasdaq-listed firms, minus finance companies.

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