Bitcoin · Wall Street · Bitcoin ETF · Bitcoin Magazine
Both funds launch with a 95% allocation to U.S. large-cap equities and a 5% allocation to bitcoin
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Under the index methodology, dividends generated by the underlying stock portfolios flow into bitcoin-linked instruments, including spot bitcoin exchange-traded products, futures contracts, options, and in some cases a wholly-owned subsidiary in the Cayman Islands, rather than being redistributed to investors or…
Key facts
- The Thursday filing registers the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, with an effective date as early as Sept. 1, 2026
- This week, BlackRock launched the iShares Bitcoin Premium Income ETF (BITA), a new fund that holds exposure to Bitcoin through IBIT while selling covered-call options on 25–35% of its holdings
- Bitwise predicted more than 100 such ETFs could launch in 2026, and Bloomberg Intelligence counted well over 100 filings in the pipeline at the end of last year
- Quarterly rebalancing rules would trim bitcoin allocations above 5% back to 4.5%, while a hard cap limits bitcoin exposure to 20% of the portfolio between rebalancing periods
Summary
Franklin Templeton filed for two new ETFs that automatically reinvest stock dividends into Bitcoin exposure, blending traditional equity investing with a built-in Bitcoin accumulation strategy. Franklin Templeton has filed with the Securities and Exchange Commission to launch two exchange-traded funds that channel corporate dividend payments directly into bitcoin, the latest sign of Wall Street’s push to embed cryptocurrency into traditional investment structures. The Thursday filing registers the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, with an effective date as early as Sept. 1, 2026. The “DRIP” name borrows from dividend reinvestment plans, a mechanism long used by investors to compound stock positions over time, and repurposes it to accumulate bitcoin rather than additional shares. Both funds launch with a 95% allocation to U.S. large-cap equities and a 5% allocation to bitcoin.