Asset manager Franklin Templeton has registered two proposed exchange-traded funds with Nasdaq under the Franklin Templeton ETF Trust. The strategy aims to invest in US equities while directing dividend income into Bitcoin.
The filings introduce two distinct products: the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF. The proposed structure provides traditional stock investors with a method to build Bitcoin exposure through dividends, eliminating the need to sell shares or make separate cryptocurrency purchases.
Fund Structure and Target Allocation
Nate Geraci, president of NovaDius Wealth Management, highlighted the filings in an October 26 social media post, describing them as funds that hold US stocks and reinvest dividends into Bitcoin, targeting a 5% Bitcoin allocation. Geraci characterized the design as a straightforward route for everyday investors to gain crypto exposure.
The registration document incorporates a description of the funds' shares from a post-effective amendment filed with the Securities and Exchange Commission on October 22. However, the filing does not establish that trading has begun or provide an official launch date.
Broader Market Context
The proposed funds arrive during a period of market movement for Bitcoin. CoinGecko data placed Bitcoin just under $80,000, reflecting declines of over 1% in the past 24 hours and nearly 4% over seven days. Coinglass liquidation data recorded roughly $33 million in Bitcoin positions wiped out in a 24-hour window, with long positions accounting for approximately $27 million of that total. Additionally, existing spot Bitcoin exchange-traded funds experienced outflows exceeding $635 million on a recent Friday.
