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Franklin Templeton Officially Launches 2 Bitcoin DRIP ETFs That Turn Dividends Into Bitcoin

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Franklin Templeton Officially Launches 2 Bitcoin DRIP ETFs That Turn Dividends Into Bitcoin

Bitcoin Magazine

Franklin Templeton Officially Launches 2 Bitcoin DRIP ETFs That Turn Dividends Into Bitcoin

Two Nasdaq-listed funds route dividends from large U.S. companies into a bitcoin sleeve that grows with every payment.

Franklin Templeton has officially launched two exchange-traded funds that convert stock dividends into bitcoin. The Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) will trade on Nasdaq. 

The launch completes the last regulatory step after Franklin filed registration papers with the Securities and Exchange Commission on October 22. The filings for both funds arrived in June without tickers or fees. Four months after that filing, the details are in. 

FBEQ tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index. The index holds the 500 largest U.S. companies by market capitalization, weighted by float-adjusted market cap. As of September 30, it held 499 stocks ranging from $10.2 billion to $5.5 trillion in size, with the heaviest concentration in information technology.

At inception, the index allocates 95% to those stocks and 5% to BTC. Each dividend the companies pay, whether regular or special, is reinvested into BTC at the market open on the day after the ex-date. The BTC share of the portfolio grows with each payment.

A traditional dividend reinvestment plan, or DRIP, uses cash dividends to buy more shares of the company that paid them. Franklin’s version routes that cash into BTC. For a holder, the dividend stream from the largest companies in America becomes a recurring BTC purchase, with no exchange account, no wallet and no custody decisions.


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