Key Takeaways
- • Franklin Templeton filed a Form 8-A with the SEC on October 22, 2026 to register shares of two ETFs on Nasdaq, with a prospectus listing an effective date of October 27, completing the final regulatory step before launch.
- • The Franklin US Equity Bitcoin DRIP Index ETF (ticker FBEQ) starts with 95% in stocks from the VettaFi US Large-Cap 500 Bitcoin DRIP Index and 5% in bitcoin, routing every dividend, regular or special, into bitcoin.
- • FBEQ carries a 0.09% expense ratio with no 12b-1 fee, is managed by Franklin Advisory Services with Franklin Templeton Institutional as sub-advisor, and is run by Dina Ting, Hailey Harris, Joe Diederich and Basit Amin.
- • Bitcoin exposure is capped: allocations above 5% are trimmed to 4.5% at quarterly rebalances, and any move above 20% between rebalances is cut back to 4.5% within two business days.
- • The fund holds no bitcoin on-chain, gaining exposure instead through bitcoin ETPs (including Franklin's own EZBC), bitcoin futures and options, or depositary receipts, in some cases via a Cayman Islands subsidiary.
Summary
Franklin Templeton has taken the last regulatory step before launching two exchange-traded funds that convert stock dividends into bitcoin. On October 22, the firm filed a Form 8-A with the 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 the Nasdaq. A prospectus filed the same day lists an effective date of October 27. Both filings first arrived in June without tickers or fees, according to the original article's account.
The Equity fund, ticker FBEQ, tracks 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, the index held 499 stocks ranging from $10.2 billion to $5.5 trillion in size, with a concentration in information technology. At inception it allocates 95% to equities and 5% to bitcoin. Each dividend paid by the constituent companies is reinvested into bitcoin at the market open on the day after the ex-date, so the bitcoin share grows with each payment. Franklin describes this as a version of a traditional dividend reinvestment plan that routes cash into bitcoin rather than additional shares of the paying company. The Innovation fund uses the same mechanic on the VettaFi US Innovation 100 Bitcoin DRIP Index, which draws from the 100 largest non-financial companies listed on the Nasdaq.
The bitcoin sleeve is subject to limits. At each quarterly rebalance, an allocation above 5% is trimmed to 4.5%. If bitcoin exceeds 20% of the index between rebalances, it is reduced to 4.5% within two business days, with proceeds returned to stocks. The fund does not hold bitcoin directly on-chain. Exposure is gained through bitcoin exchange-traded products, including Franklin's own spot fund, through bitcoin futures and options, or through depositary receipts, in some cases via a Cayman Islands subsidiary. FBEQ carries a 0.09% expense ratio with no 12b-1 fee. Franklin Advisory Services manages the fund, with Franklin Templeton Institutional as sub-advisor.
The filings extend Franklin's broader bitcoin strategy. The firm filed for a spot bitcoin ETF in September 2023 and launched it as EZBC in January 2024. In April, it acquired 250 Digital and formed Franklin Crypto, an institutional digital asset division. The prospectus warns that investors can lose money and that bitcoin's price swings may affect the fund's net asset value. The original article notes that whether the structure appeals to the audience Franklin is targeting will become clear after October 27.
The Equity fund, ticker FBEQ, tracks 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, the index held 499 stocks ranging from $10.2 billion to $5.5 trillion in size, with a concentration in information technology. At inception it allocates 95% to equities and 5% to bitcoin. Each dividend paid by the constituent companies is reinvested into bitcoin at the market open on the day after the ex-date, so the bitcoin share grows with each payment. Franklin describes this as a version of a traditional dividend reinvestment plan that routes cash into bitcoin rather than additional shares of the paying company. The Innovation fund uses the same mechanic on the VettaFi US Innovation 100 Bitcoin DRIP Index, which draws from the 100 largest non-financial companies listed on the Nasdaq.
The bitcoin sleeve is subject to limits. At each quarterly rebalance, an allocation above 5% is trimmed to 4.5%. If bitcoin exceeds 20% of the index between rebalances, it is reduced to 4.5% within two business days, with proceeds returned to stocks. The fund does not hold bitcoin directly on-chain. Exposure is gained through bitcoin exchange-traded products, including Franklin's own spot fund, through bitcoin futures and options, or through depositary receipts, in some cases via a Cayman Islands subsidiary. FBEQ carries a 0.09% expense ratio with no 12b-1 fee. Franklin Advisory Services manages the fund, with Franklin Templeton Institutional as sub-advisor.
The filings extend Franklin's broader bitcoin strategy. The firm filed for a spot bitcoin ETF in September 2023 and launched it as EZBC in January 2024. In April, it acquired 250 Digital and formed Franklin Crypto, an institutional digital asset division. The prospectus warns that investors can lose money and that bitcoin's price swings may affect the fund's net asset value. The original article notes that whether the structure appeals to the audience Franklin is targeting will become clear after October 27.
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