Franklin Templeton filed with the SEC for two ETFs with a twist: they hold baskets of US stocks but funnel the dividends into Bitcoin instead of reinvesting them back into shares. They’re calling it “Bitcoin DRIP” — riffing on the dividend reinvestment plans investors have used for decades.
The funds track VettaFi indices. One follows a US large-cap 500, the other a US innovation 100. Each starts with a 5% Bitcoin weighting and 95% equities, capped at 20% Bitcoin exposure. Quarterly rebalances keep it in check.
Bitcoin exposure comes through crypto ETPs — including ones sponsored by Franklin Templeton affiliates — plus options, futures, and in some cases a Cayman Islands subsidiary. No fees listed yet, and the earliest these could launch is early September.
This adds to what’s shaping up to be a massive year for crypto ETFs. After the SEC published generic listing standards in late 2025, issuers rushed products to market. Bitwise predicts over 100 crypto ETFs could launch in 2026 alone. Most have moved beyond plain spot exposure — BlackRock recently launched a covered-call income Bitcoin ETF — and Franklin’s dividend design is the latest structural innovation.
The filing’s part of a broader digital assets push for Franklin Templeton. They already run a spot Bitcoin ETF, launched a dedicated crypto division this year after acquiring CoinFund spinoff 250 Digital, and partnered with Kraken’s parent Payward on tokenization.
