Franklin Templeton Prepares Two Bitcoin Dividend ETFs for October 27

Franklin Templeton is preparing to introduce two Bitcoin dividend reinvestment ETFs on Nasdaq, with regulatory filings scheduled to become effective October 27, 2026. Both funds initially allocate 95% to U.S. stocks and 5% to Bitcoin exposure. The products will automatically reinvest stock dividends into Bitcoin-related investments, creating a new way to combine traditional equities with cryptocurrency. However, Franklin Templeton has not confirmed when trading will begin.

The Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) tracks an index of major U.S. companies. Meanwhile, the Franklin US Innovation Bitcoin DRIP Index ETF (FIBT) focuses on innovation-oriented businesses. Both funds will reinvest regular and special dividends into Bitcoin exposure. Their annual expense ratios are 0.09% and 0.19%, respectively.

The strategy includes safeguards against excessive cryptocurrency exposure. During quarterly rebalancing, Bitcoin allocations exceeding 5% will fall to 4.5%. Additionally, allocations crossing 20% between rebalancing periods will trigger reductions. Franklin Templeton can obtain Bitcoin exposure through exchange-traded products, futures, options, and other permitted instruments. The upcoming effective date marks another step toward integrating cryptocurrency investments into conventional stock portfolios.