Franklin Templeton filed SEC Form 485APOS on June 18, 2026 (Bitcoin Magazine, Decrypt), registering two index funds that automatically redirect U.S. equity dividend payments into Bitcoin exposure.
How the DRIP structure works
The two funds, the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, start with approximately 95% U.S. equities and 5% Bitcoin (Decrypt). When the equity holdings pay dividends, those distributions flow into Bitcoin-linked instruments (spot Bitcoin ETPs, futures, options, and a Cayman Islands subsidiary) rather than being returned to shareholders or reinvested in equities.
The structure targets institutions whose mandates bar direct crypto holdings. A pension fund or endowment that cannot hold Bitcoin outright can accumulate Bitcoin exposure inside a conventional equity wrapper without a deliberate allocation decision.
Fund specifications
The Equity fund tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, which contained 498 securities as of April 30, 2026, with market capitalizations from $7.5 billion to $4.9 trillion (Bitcoin Magazine). The Innovation fund follows the VettaFi US Innovation 100 Bitcoin DRIP Index, covering 100 large non-financial Nasdaq companies. Both funds rebalance quarterly; Bitcoin exposure is capped at 20% between rebalances and trimmed to 4.5% at each rebalancing (Bitcoin Magazine).
No fees appear in the preliminary filing. Both funds could become effective as early as September 1, 2026, absent SEC action (Bitcoin Magazine). No launch is confirmed; this is the registration stage.
Bitwise has predicted more than 100 crypto-linked ETFs could launch this year as asset managers test structured Bitcoin wrappers.
