According to ChainCatcher, Franklin Templeton, with assets under management of $1.7 trillion, has completed the final regulatory step prior to listing two ETFs that convert stock dividends into Bitcoin. On October 22, the company filed Form 8-A with the U.S. Securities and Exchange Commission to register shares of the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF for trading on Nasdaq. The prospectus submitted on the same day indicates an effective date of October 27. These two funds were initially filed in June this year, without disclosing ticker symbols or expense ratios at the time. The equity fund’s ticker is FBEQ, tracking the VettaFi US Large-Cap 500 Bitcoin DRIP Index, which holds the 500 largest U.S. companies by market capitalization, weighted by float-adjusted market cap; as of September 30, it held 499 stocks, with significant weightings in the information technology sector. The fund’s initial allocation is 95% equities and 5% Bitcoin; regular or special dividends distributed by companies are used to purchase Bitcoin at the open on the day following the ex-dividend date, gradually increasing the Bitcoin allocation with each dividend payout. Quarterly rebalancing reduces any Bitcoin allocation exceeding 5% to 4.5%; if the Bitcoin allocation surpasses 20% between two rebalancing events, it will be reduced to 4.5% within two trading days, with proceeds redirected back into equities. The fund does not hold on-chain Bitcoin directly but gains exposure through Bitcoin exchange-traded products (including its own spot fund), futures, options, or depositary receipts, partially via a subsidiary in the Cayman Islands. FBEQ has an expense ratio of 0.09%, with no 12b-1 fees, managed by Franklin Advisory Services and co-advised by Franklin Templeton Institutional. The innovation fund employs the same mechanism, tracking the VettaFi US Innovation 100 Bitcoin DRIP Index, composed of the 100 largest non-financial companies listed on Nasdaq. Franklin Templeton previously filed for a spot Bitcoin ETF in September 2023 and launched it in January 2024 under the ticker EZBC; in April this year, it acquired 250 Digital and established its institutional digital assets division, Franklin Crypto. These two DRIP funds extend this strategy to investors who do not otherwise purchase Bitcoin directly.
Franklin Templeton Completes Regulatory Process for Bitcoin Dividend ETFs
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Summary
Franklin Templeton has completed the final regulatory step for its two Bitcoin ETF filings ahead of listing. On October 22, the company filed Form 8-A with the SEC to register shares of the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF for trading on Nasdaq. The prospectus set the effective date as October 27. These funds, initially filed in June 2026, track indices that reinvest dividends into Bitcoin. The equity fund, FBEQ, initially holds 95% equities and 5% Bitcoin, with Bitcoin exposure increasing after each dividend payout. Bitcoin exposure is managed through ETFs, futures, options, or depositary receipts, with no direct on-chain holdings.
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