Franklin Templeton files with SEC for 2 novel ETFs to convert stock dividends into Bitcoin

Franklin Templeton, an investment management giant overseeing $1.8 trillion in assets, has filed updated documents with the US Securities and Exchange Commission (SEC) to introduce two innovative exchange-traded funds (ETFs) on the Nasdaq. The move marks a significant step for traditional finance as it seeks to integrate cryptocurrency mechanisms into mainstream investment products. The proposed products—Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and Franklin US Innovation Bitcoin DRIP Index ETF (FIBT)—aim to deliver traditional US stock market exposure, while using a structured dividend reinvestment approach to incrementally increase Bitcoin positions over time. Unlike typical spot Bitcoin ETFs, both FBEQ and FIBT will use rules-based indices that capture dividends paid by underlying US equities and methodically channel that cash flow into Bitcoin purchases.

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