Franklin Templeton launches two equity ETFs that reinvest dividends into bitcoin

Franklin Templeton ETF Trust registered the shares of two new index ETFs on the Nasdaq Stock Market on 22 October, the same day it filed the post-effective amendment covering them. Summary prospectuses dated 27 October name the funds as the Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin US Innovation Bitcoin DRIP Index ETF (FIBT).

Fees

FBEQ’s total annual operating expenses are 0.09%, and FIBT’s are 0.19%.

How the bitcoin allocation works

Each fund tracks an index that builds an allocation to bitcoin by systematically reinvesting dividends from its equity holdings into bitcoin. Dividends are reinvested at the market open on the day after the ex-dividend date.

The allocation is capped in two ways:

• At each quarterly rebalance, a bitcoin allocation above 5% is cut back to 4.5%. An allocation of 5% or less is left unchanged.
• If the allocation exceeds 20% at any close between rebalances, it is reset to 4.5% at the close of the second business day afterwards.

Each fund invests at least 80% of its net assets in the index’s equities and in bitcoin-related investments. Those investments include bitcoin exchange-traded products, among them ETPs sponsored by Franklin affiliates, as well as bitcoin options and futures and depositary receipts. The fund may hold some of this exposure through a wholly owned Cayman Islands subsidiary.

Why it matters

Instead of a fixed bitcoin weight, these funds let the allocation build up from dividends and then trim it at set levels. The prospectuses describe the exposure as a secondary allocation alongside the equity index.

Added to The Midpoint on 31 October 2026, with the ETFs section. This article is dated to the event it describes; it was not published at the time.

Sources

• Registration of securities for FIBT and FBEQ (Form 8-A12B), Franklin Templeton ETF Trust via SEC EDGAR, 22 Oct 2026
• Franklin Templeton ETF Trust, post-effective amendment (Form 485BPOS), Franklin Templeton ETF Trust via SEC EDGAR, 22 Oct 2026
• Franklin US Equity Bitcoin DRIP Index ETF: summary prospectus (Form 497K), Franklin Templeton ETF Trust via SEC EDGAR, 27 Oct 2026
• Franklin US Innovation Bitcoin DRIP Index ETF: summary prospectus (Form 497K), Franklin Templeton ETF Trust via SEC EDGAR, 27 Oct 2026