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Franklin Templeton Files ETFs to Reinvest Stock Dividends Into Bitcoin

The registration shows dividends would be diverted into Bitcoin through new index rules to create steady automated crypto accumulation

Overview

  • Franklin Templeton submitted a preliminary SEC registration on June 19, 2026 for two ETFs that would hold U.S. stock baskets and systematically reinvest the dividends those stocks pay into Bitcoin exposure.
  • Each fund would track a VettaFi 'Bitcoin DRIP' index that begins with a 95% allocation to U.S. equities and a 5% allocation to Bitcoin, uses quarterly rebalances to trim Bitcoin back toward 4.5%, and enforces a 20% maximum Bitcoin cap between rebalances.
  • The filing says Bitcoin exposure may be obtained through Bitcoin exchange-traded products, futures, options, and in some cases via a Cayman Islands subsidiary, and it allows use of Bitcoin ETPs sponsored by Franklin affiliates.
  • The registration is preliminary, lists no fees, and uses a rule that could let the funds become effective about 75 days after filing with an anticipated effective date of Sept. 1, 2026 if the SEC does not object.
  • The proposal builds on Franklin’s wider push into digital assets, which includes a spot Bitcoin ETF, a new Franklin Crypto unit and recent tokenization partnerships, and it adds another structured option to a crowded 2026 pipeline of crypto-linked ETF filings.