- Franklin Templeton registered two Bitcoin dividend reinvestment ETFs for trading on Nasdaq.
- The funds start with 95% in U.S. stocks and 5% in Bitcoin, with dividends reinvested into Bitcoin.
- The filing follows a June proposal and several delays, with the registration set to become effective Oct. 27.
- Franklin Templeton already operates the Franklin Bitcoin ETF (EZBC), which held about $467 million in assets.
Franklin Templeton registered two exchange-traded funds (ETFs) for trading on Nasdaq on Thursday that will reinvest stock dividends into Bitcoin, moving the long-delayed products closer to launch. The $1.8 trillion asset manager filed a Form 8-A with the U.S. Securities and Exchange Commission (SEC), registering shares of the Franklin U.S. Equity Bitcoin DRIP Index ETF and the Franklin U.S. Innovation Bitcoin DRIP Index ETF.
According to a prospectus filed on Thursday, the funds’ registration becomes effective Oct. 27, though Franklin Templeton has not announced a trading date. The Equity fund tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index, which begins with 95% in stocks and 5% in Bitcoin.
All regular and special dividends from those companies will be reinvested into Bitcoin at the market open the day after the ex-dividend date. This process will steadily raise the fund’s Bitcoin share, with rebalancing rules that trim any weight above 5% back to 4.5% quarterly and after any intra-quarter crossing of 20%.
The fund can gain Bitcoin exposure through exchange-traded products, including those sponsored by affiliates, as well as futures and options. Franklin Templeton first filed the funds in June but pushed back the effective date several times.
The new filing came the same day investors pulled $635.49 million from U.S. spot Bitcoin ETFs. Bitcoin’s price fell more than 1% over 24 hours, while retail sentiment on Stocktwits remained in the bearish zone.
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