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Franklin ETFs Turn Dividends into Bitcoin
30 Oct
Summary
- Two new ETFs convert stock dividends into Bitcoin.
- Funds start with 95% stocks and 5% Bitcoin allocation.
- One ETF charges a 0.09% annual fee, undercutting rivals.
Franklin Templeton has introduced two new ETFs on Nasdaq: the Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin US Innovation Bitcoin DRIP Index ETF (FIBT). These innovative funds redirect stock dividends into Bitcoin, a strategy that diverges from traditional dividend reinvestment plans. Initially, both ETFs will hold 95% in U.S. stocks and 5% in Bitcoin, with dividends automatically used to acquire more BTC.
FBEQ, tracking the 500 largest U.S. companies, offers an annual fee of 0.09%. FIBT, focusing on the 100 largest non-financial Nasdaq companies, has a 0.19% fee. These rates are competitive, especially FBEQ's fee, which is substantially lower than the 0.25% charged by the iShares Bitcoin Trust for direct Bitcoin exposure. Investors gain indirect access to Bitcoin through exchange-traded products, eliminating the need for separate crypto accounts.
The Bitcoin allocation within these ETFs is actively managed, capped near 5%, and trimmed to 4.5% quarterly if it exceeds this limit. This rebalancing mechanism limits potential upside for investors seeking significant Bitcoin gains, unlike pure Bitcoin funds. These ETFs are launching amid a recent dip in Bitcoin's price and a slight waning of interest in spot Bitcoin ETFs, with outflows reported in late October 2026, followed by a partial recovery.
