Franklin Templeton files ETFs that turn stock dividends into Bitcoin exposure

The proposed funds would allocate stock dividends to Bitcoin-linked investments, using a dividend reinvestment strategy to build crypto exposure over time.

Global asset manager Franklin Templeton has filed for two exchange-traded funds (ETFs) designed to convert dividend income from US stocks into Bitcoin exposure, according to a June 18 filing with the US Securities and Exchange Commission (SEC).

The proposed Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF would track indexes that systematically reinvest stock dividends into a Bitcoin allocation, creating a rules-based Bitcoin exposure alongside traditional equity holdings.

According to the filing, the funds would launch with a 5% allocation to Bitcoin exposure and a 95% allocation to US equities. Under the index methodology, regular and special dividends from the stock holdings would be reinvested into the index's Bitcoin allocation, while quarterly rebalances would maintain the Bitcoin allocation within predefined limits.

Read more