$1.8 trillion asset manager Franklin Templeton’s two Bitcoin Dividend Reinvestment Plan (DRIP) ETFs have now become effective. The Wall Street giant is set to launch Bitcoin ETFs that systematically reinvest stock dividends into Bitcoin.
Franklin Templeton Bitcoin DRIP ETFs Become Effective
According to the latest SEC filing, the N-1A registration statement for Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF has become effective. This clears the key regulatory step to launch the exchange-traded funds (ETFs) on Nasdaq.
As CoinGape reported, Nasdaq approved Franklin Templeton to list and trade the two new Bitcoin ETFs with a dividend reinvestment strategy. They will list and trade on Nasdaq under tickers FBEQ and FIBT. The ETFs will reinvest dividends from US stocks into Bitcoin ETPs, derivatives, and other instruments.
Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) will track the VettaFi US Large Cap 500 Bitcoin DRIP Index. It will have a management fee of 0.09%. The initial investment begins with 95% in US stocks and 5% in Bitcoin.
All regular and special dividends are reinvested into Bitcoin. If Bitcoin allocation exceeds 5%, the exposure is rebalanced down to 4.5% during quarterly rebalancing.
Franklin US Innovation Bitcoin DRIP Index ETF (FIBT) will track the VettaFi US Innovation 100 Bitcoin DRIP Index. It has a 0.19% management fee. It will also make an initial investment of 95% in US stocks and 5% in Bitcoin.
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Launch and Trading Expectations
Franklin Templeton Bitcoin ETFs’ registration statement became effective. However, the issuer has not announced a specific target launch date. The shares can trade once listed on Nasdaq. Prospectuses note that the SEC has neither approved nor disapproved the ETFs.
Nate Geraci, co-founder of The ETF Institute, said it is “smart product design by Franklin Templeton. Easy way for everyday investors to gain BTC exposure.”
He noted that the structure offers investors a passive way to accumulate limited Bitcoin exposure funded entirely by equity dividends, reflecting Franklin Templeton’s continued expansion into crypto-linked products.
Recently, Franklin Templeton met with US SEC Crypto Task Force. It sought clarity on whether its tokenized funds and ETFs need additional relief to participate in the TSV trading environment created by the Innovation Exemption without violating the 1940 Act.
Meanwhile, BTC price has jumped towards $81,500 today. The 24-hour low and high are $79,494 and $81,635, respectively. Trading volume has dropped almost 10% further ahead of the Fed rate decision later today.
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