TL;DR
- Franklin Templeton has registered two Bitcoin-focused ETFs for Nasdaq trading under the proposed tickers FBEQ and FIBT, although a launch date remains unannounced.
- Both funds will allocate 95% of their portfolios to US equities and 5% to Bitcoin-related investments, using stock dividends to increase crypto exposure.
- The ETFs will charge a 0.09% annual management fee and apply allocation limits designed to balance Bitcoin’s growth potential with portfolio risk.
Franklin Templeton has advanced its plans for two new Bitcoin ETFs after registering the funds for trading on Nasdaq, expanding the range of options available to investors seeking cryptocurrency exposure through traditional financial markets. The products combine US stock investments with a dividend reinvestment strategy designed to build Bitcoin exposure over time, without requiring investors to purchase or custody BTC directly.
The October 22 regulatory filing marks another development in the asset manager’s digital asset strategy. However, the registration does not establish a trading date, and investors must wait for further announcements before the funds become available.
How Franklin Templeton’s Bitcoin ETFs Will Operate
The proposed Franklin US Equity Bitcoin DRIP Index ETF, trading under FBEQ, will follow an index based on 500 major US companies. Its counterpart, the Franklin US Innovation Bitcoin DRIP Index ETF, under the ticker FIBT, will focus on 100 large companies selected from an innovation-oriented Nasdaq stock universe.
Both funds will initially allocate 95% of their portfolios to equities and 5% to Bitcoin-related investments. Instead of using dividends to purchase additional shares of the underlying companies, the strategy directs regular and special dividend payments toward eligible Bitcoin investment products on the business day following the relevant ex-dividend date.
This approach offers a different route into crypto investing. Shareholders retain exposure to traditional businesses while gaining an additional source of potential Bitcoin appreciation. Nevertheless, investors will not own Bitcoin directly, and their returns will reflect the performance of both components, alongside expenses and tracking differences.
The proposed annual management fee stands at 0.09%, positioning the funds within a relatively low-cost segment of the ETF market. Their Bitcoin allocations will also follow predefined limits. During quarterly rebalancing, exposure above 5% will be reduced to 4.5%. If the allocation exceeds 20% between reviews, a separate adjustment rule will apply.
A Broader Strategy For Digital Asset Adoption
Franklin Templeton’s latest registrations build on its existing cryptocurrency business, which includes the Franklin Bitcoin ETF (EZBC), a spot Bitcoin product that gives investors exposure to the asset’s price through a conventional brokerage account.
The firm has also developed blockchain-based investment products, including the Franklin OnChain US Government Money Fund, known as BENJI. Such initiatives reflect a broader industry shift toward integrating digital assets and tokenized financial instruments into established investment structures.
