The proposed funds would start with roughly 95% U.S. equities and 5% Bitcoin-linked exposure, using dividend income to build BTC positions over time if approved.
Franklin Templeton has filed SEC registration paperwork for two proposed Bitcoin DRIP index ETFs that would use dividend income from U.S. equity holdings to build Bitcoin-linked exposure. The proposed Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF are designed to begin with roughly a 95% U.S. equity allocation and 5% Bitcoin exposure, creating a hybrid structure that differs from both traditional equity income funds and straightforward spot Bitcoin ETFs. The Bitcoin sleeve could include Bitcoin-backed exchange-traded products, futures, options or other permitted instruments. The filing also sets portfolio guardrails, including quarterly rebalancing toward 4.5% if Bitcoin exposure rises above 5% and a 20% cap between rebalances. The products are preliminary filings rather than live funds, with an anticipated effective date no earlier than September 2026.