Franklin Templeton Launches Dividend-to-Bitcoin ETFs on Nasdaq

Asset manager Franklin Templeton has launched two index exchange-traded funds designed to funnel equity dividends directly into $BTC exposure, according to prospectuses dated Oct. 27, 2026 ^{1 2}. The Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin US Innovation Bitcoin DRIP Index ETF (FIBT) trade on The Nasdaq Stock Market LLC ^{1 2}.

FBEQ tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, charging a total annual management fee of 0.09% ¹. FIBT mirrors the VettaFi US Innovation 100 Bitcoin DRIP Index—which follows top Nasdaq-listed non-financial firms—carrying an operating expense ratio of 0.19% ². Under normal conditions, both funds allocate at least 80% of net assets to their respective benchmark's underlying equity basket and corresponding bitcoin-related instruments ^{1 2}.

Dividend Reinvestment and Rebalancing Rules

Rather than distributing equity yield in cash or standard shares, both underlying indexes mechanically reinvest all regular and special dividends into bitcoin at the market open following the ex-dividend date ^{1 2}. Exposure is maintained via bitcoin-backed ETPs, related futures and options, or depositary receipts, with the funds permitted to access positions through Cayman Islands subsidiaries ^{1 2}.

Each index launched with a 95% allocation to equities and 5% to bitcoin ^{1 2}. To preserve crypto as a secondary allocation, the framework imposes rebalancing curbs: quarterly evaluations rebalance bitcoin exposure down to 4.5% if it exceeds 5% ^{1 2}. Additionally, if bitcoin exposure crosses a strict 20% cap at any daily market close between quarterly cycles, the index resets to 4.5% two business days later ^{1 2}.

The listings highlight novel product structures within institutional crypto adoption, building on momentum from US Spot Bitcoin ETFs that have integrated digital assets into conventional wealth vehicles. At the time of writing, $BTC traded at $77,187.