Franklin Templeton has disclosed that it has submitted registration documents for two new ETFs, planning to transfer stock dividend income into Bitcoin-related assets according to established rules. These products will still have US stocks as their underlying holdings, but will include a fixed proportion of Bitcoin exposure, demonstrating that traditional asset management institutions continue to expand their crypto-related investment tools.
The two products are scheduled to take effect in September.
The documents show that the two products are the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, with an expected effective date of September 1, 2026.
According to the disclosure, the initial allocation of the product is 95% US large-cap stocks and 5% Bitcoin-related investments. The Bitcoin portion can be realized through spot Bitcoin exchange-traded products, futures, options, or other investment instruments.
Bitcoin positions have a limit.
The company disclosed that the product will be rebalanced quarterly. If the Bitcoin allocation is higher than 5%, it will be reduced to 4.5%. Between two rebalances, the Bitcoin exposure is capped at 20%.
- Initial allocation: 95% US stocks, 5% Bitcoin-related assets
- Quarterly rebalancing: Adjust back to 4.5% if it exceeds 5%.
- Maximum exposure during the period: Bitcoin exposure cannot exceed 20%.
As of April 30, the relevant stock index comprised approximately 498 securities. Documents show that the market capitalization of the constituent stocks ranged from approximately $7.5 billion to $4.9 trillion.
Continue to expand digital asset business
This application adds another new product to Franklin Templeton's digital asset product line. The company already offers spot crypto ETFs, tokenized funds, and blockchain-based investment products.
According to SoSoValue data, as of Thursday, Franklin Templeton's spot Bitcoin ETF "EZBC" had net assets of $358.9 million, with a cumulative net inflow of $329.6 million.
Recently, we have been advancing tokenization cooperation.
In recent months, Franklin Templeton has continued to advance several digital asset collaborations. On June 15, the company announced a partnership with Ondo Finance to launch a tokenized version of an ETF that can be traded 24 hours a day in a crypto wallet, targeting investors outside the United States and covering US stocks, fixed income, and gold assets.
Earlier in June, Franklin Templeton integrated its BENJI tokenized money market fund into MoonPay Trade, allowing institutional clients to exchange BENJI for stablecoins such as USDC and USDT through on-chain trading infrastructure.
In May, the company also announced a partnership with Payward, the parent company of cryptocurrency exchange Kraken. The two companies stated that BENJI will be used on the Kraken platform as collateral and cash management tools for institutional users, and plan to develop more tokenized investment products based on Payward's xStocks infrastructure.
