Franklin Templeton filed two new ETFs with the SEC on June 19, 2026, structured to automatically convert U.S. equity dividend income into Bitcoin exposure — the first filings of their kind from a major asset manager.
How the funds work
The Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, both filed under Franklin Templeton ETF Trust, redirect dividend proceeds rather than distributing them as cash or reinvesting in additional shares. Each fund routes that income into Bitcoin-linked instruments: spot Bitcoin exchange-traded products, futures contracts, options, and in some cases positions held through a wholly-owned Cayman Islands subsidiary.
Fund structure
Each fund launches at 95% U.S. equities and 5% Bitcoin exposure. The equity fund tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, which held approximately 498 securities as of April 30, 2026 with constituent market caps ranging from $7.5 billion to $4.9 trillion. The innovation fund tracks the VettaFi US Innovation 100 Bitcoin DRIP Index, built from the 100 largest non-financial companies listed on Nasdaq. Both indices were created specifically for this strategy.
Rebalancing and timeline
Quarterly rebalancing trims Bitcoin back to 4.5% if it rises above 5%; a hard cap keeps the allocation below 20% between rebalancing periods. Tickers, management fees, and the listing exchange are not disclosed in the preliminary filing. If the SEC approves, trading could begin as early as September 1, 2026.
No registered U.S. fund has previously linked equity dividend yield to Bitcoin accumulation inside a single vehicle. The mechanism requires no investor action: dividends flow into Bitcoin positions automatically, on a rules-based schedule, while the equity portfolio runs in parallel.
