Franklin Templeton Launches Two Dividend Reinvestment Bitcoin ETFs

Franklin Templeton has submitted Form 8-A to the U.S. Securities and Exchange Commission to complete the Nasdaq listing registration for two new exchange-traded funds, with an effective date of October 27, and trading is expected to start soon. The two products are the Franklin US Equity Bitcoin DRIP Index ETF (ticker FBEQ) and the Franklin US Innovation Bitcoin DRIP Index ETF (ticker FIBT). FBEQ tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, covering approximately 500 of the largest U.S. companies by market capitalization; FIBT tracks the VettaFi US Innovation 100 Bitcoin DRIP Index, focusing on the 100 largest non-financial Nasdaq-listed companies. Both funds employ a passive index strategy, with an initial asset allocation of approximately 95% U.S. equities and 5% Bitcoin exposure. The core mechanism of the product is "dividend reinvestment in Bitcoin," where on the ex-dividend date, the cash dividends are automatically used to increase Bitcoin-related exposure at the market open the following day, primarily through Bitcoin exchange-traded products, futures, options, etc., with the fund not directly holding on-chain Bitcoin. To manage risk, the index has rebalancing rules in place; if the Bitcoin weight exceeds 5% during quarterly rebalancing, it will be reduced to 4.5%; if the Bitcoin weight exceeds 20% during the rebalancing interval, it must be reduced back to 4.5% within two trading days. The management fee for FBEQ is 0.09%, while for FIBT it is 0.19%, and neither charges a 12b-1 fee.

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