Franklin Templeton files Bitcoin DRIP ETFs using stock dividends

**Franklin Templeton Files for Equity-to-Bitcoin DRIP ETFs**

Franklin Templeton has filed SEC paperwork for two proposed ETFs combining U.S. equities with Bitcoin exposure. Launch is not expected before September 2026.

The funds — Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF — start with 95% U.S. stocks and 5% BTC-linked assets. Dividend income from equities will be redirected into Bitcoin-backed ETPs, futures, options or other permitted instruments.

Quarterly rebalances are planned. The target Bitcoin allocation is 4.5%, with a hard cap at 20% to limit volatility impact.

This is not a pure Bitcoin product. It’s aimed at investors who want steady U.S. equity exposure while gradually building BTC holdings through dividends — without selling stocks or making manual purchases.

Franklin Templeton already runs a spot Bitcoin ETF, but this filing shows a shift in the market toward hybrid allocation tools. The DRIP structure could integrate Bitcoin into traditional portfolios, creating recurring inflows if approved and adopted.

Products remain in the registration phase. Structure, timing, and launch will depend on regulatory review.