Franklin Templeton and filed and the Securities and Exchange Commission to establish two exchanges and channels that are distributed in businesses directly to bitcoin, the latest sign of Wall Street and the push to integrate cryptocurrency into traditional investments.
Thursday’s filing lists the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, which have an effective date of September 1, 2026.
The name “DRIP” comes from the plan to recycle parts – method a long career and investors to increase the stock over time – and reinvest it to accumulate bitcoin in lieu of additional shares.
Both funds start with a 95% allocation to US large-cap equities and a 5% allocation to bitcoin. The first one tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, providing a comprehensive view of the market of approximately 498 securities with market caps ranging from $7.5 billion to $4.9 trillion, while the second one tracks the VettaFi fixed-price index that focuses on growing companies.
Under the terms of the policy, the payments made by the shares that come from the products associated with bitcoin – including bitcoin sales, futures contracts, options, and in some cases a small portion of the Cayman Islands – are not redistributed to investors or reinvested in the stock.
This structure creates what one analysis has described as a “predictable, low-maintenance 5% of bitcoins distributed by all sectors.”
Quarterly rebalancing rules limit the distribution of bitcoin above 5% return to 4.5%, while the hard cap limits bitcoin exposure to 20% of the portfolio between rebalancing periods. No fees were disclosed at the time of writing.
Bitcoin ETFs are gaining popularity
The proposal comes amid new crypto ETF filings with the SEC spread of generic lists of crypto-linked currencies by the end of 2025.
Bitwise predicted that more than 100 such ETFs could be launched in 2026, and Bloomberg Intelligence counted 100 filings late last year. Franklin Templeton’s dividend-into-bitcoin design is the latest twist on a theme that has created investment funds and other bonds that compete with more volatile assets, such as BlackRock’s iShares Bitcoin Trust. they rule and billions in the entire economy.
The document expands Franklin Templeton’s growing digital assets.
In May, Franklin Templeton he entered cooperation with Payward – the parent of the crypto exchange Kraken – tokenize the assets of cultural funds and provide BENJI tokenized money market fund on the Kraken platform as a collateral management tool for institutional clients. Earlier this month, Franklin Templeton integrated BENJI into MoonPay Trade, enabling institutional users to exchange between fixed currencies such as USDC and USDT and tokenized funds through the MoonPay infrastructure.
This year, Franklin Templeton too he started Franklin Crypto’s dedicated team through the acquisition of CoinFund spinoff 250 Digital, and also affected separately. agreement and Ondo Finance to offer its exchange-traded ETFs 24/7 from crypto wallets, targeting investors outside the United States. Taken together, these moves position the $1.5 trillion asset manager as one of the most active companies in the digital economy.
The new Franklin Templeton DRIP ETFs join the mainstream bitcoin market at a time when the stock is undervalued. BTC trades below $62,700 as of Friday morning, more than 50% from its October 2025 peak. nearby $126,000.
Just this week, BlackRock launched the iShares Bitcoin Premium Income ETF (BITA), a new fund that uses Bitcoin through IBIT while selling call options on 25-35% of its monthly income, targeting an annual yield of 15%-25%. BlackRock ETF CEO Jay Jacobs he said The product is designed to attract money in nature and turn the volatility of Bitcoin into a source of income, while providing lower-volatility instead of holding Bitcoin directly.
