TL;DR
- Franklin Templeton filed for two ETFs that would invest in U.S. equities and use the dividends they generate to buy Bitcoin.
- The funds would target a 5% allocation to BTC, according to Nate Geraci, president of NovaDius Wealth Management.
- Neither product has a confirmed launch date yet.
Franklin Templeton filed to register two new ETFs that would combine investments in U.S. equities with the accumulation of Bitcoin through dividends. The products would allow investors to gain exposure to BTC without selling their shares or making separate cryptocurrency purchases.
The funds are named the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF. Both appear in registration documents filed with Nasdaq under the Franklin Templeton ETF Trust.
Nate Geraci, president of NovaDius Wealth Management, said the products would target a 5% allocation to Bitcoin. The available documentation does not yet specify a launch date or confirm that trading has begun.
Launching soon…
ETFs that hold US stocks & reinvest any dividends into bitcoin.
Basically like investing in S&P 500 & Nasdaq 100 w/ dividends going to btc.
Targeting 5% btc allocation.
Think smart product design by Franklin Templeton.
Easy way for everyday investors to gain… pic.twitter.com/3JkVFughjS
— Nate Geraci (@NateGeraci) October 25, 2026
Franklin Templeton Combines Dividends and Bitcoin
The proposal involves using dividends generated by the stocks in the funds’ portfolios to purchase BTC.
Geraci compared the structure to investing in indexes such as the S&P 500 and Nasdaq 100, except that dividends would be used to increase Bitcoin holdings.
This approach would allow investors to accumulate cryptocurrency using income distributed by companies, without having to contribute additional funds for each purchase.
However, Franklin Templeton has not detailed how it would maintain the 5% target allocation amid fluctuations in BTC’s price or changes in the value of the underlying stocks.
The registration filing incorporates information from an amendment submitted to the U.S. Securities and Exchange Commission (SEC) on October 22. The document does not confirm that the funds have received all the necessary approvals to begin trading.
Bitcoin Declines as ETFs Record Capital Outflows
Franklin Templeton’s proposal emerged during another correction in the crypto market.
Bitcoin is currently trading just above $80,150, posting a slight 0.2% decline over the past 24 hours and a drop of approximately 2.7% over the past week, according to CoinMarketCap.
Over the past 30 days, BTC has fallen around 5% and remains approximately 37% below its all-time high of more than $126,000.
Coinglass data recorded approximately $33 million in Bitcoin position liquidations over the previous 24 hours. Of that total, around $27 million came from long positions.
Meanwhile, U.S. spot Bitcoin ETFs recorded outflows exceeding $635 million on Friday, although they ended the week with approximately $442 million in net inflows, following several consecutive weeks of negative flows.
