Franklin Templeton Files Bitcoin DRIP ETFs That Would Route Stock Dividends Into BTC | Cryptocurrency Market News SEC

Franklin Templeton filed with the SEC for two proposed Bitcoin DRIP index ETFs designed to route equity dividends into bitcoin-linked exposure rather than reinvesting them in the stock portfolio. The preliminary filings outline funds that would start with about 95% in US equities and 5% allocated to Bitcoin-linked instruments, using dividend income from underlying holdings as the funding mechanism. The effective date is anticipated no earlier than September 2026, and the products are not yet live. The proposed structure could employ instruments such as Bitcoin-backed exchange-traded products, futures, options, or other permitted exposure routes, subject to the final prospectus. The filings include guardrails: if the Bitcoin allocation rises above 5%, the portfolio would generally rebalance quarterly toward 4.5%, and exposure is capped at 20% between rebalances. The company already operates a Franklin Bitcoin ETF, and the move signals continued experimentation with integrating bitcoin exposure into broader, equity-centered workflows. The article does not provide final approval status.