Franklin Templeton files for two Bitcoin DRIP ETFs that turn stock dividends into BTC

Franklin Templeton just filed with the SEC to launch two exchange-traded funds that do something no major Wall Street firm has tried at this scale: automatically convert stock dividends into Bitcoin. The Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF would each hold 95% large-cap US equities and 5% Bitcoin, with a twist. Every quarter, dividend income from the equity sleeve gets reinvested into BTC. The filing, dated June 18, 2026, positions the $1.78 trillion asset manager as arguably the most aggressive traditional finance player in the crypto ETF space. How the DRIP mechanism works The funds will rebalance quarterly to maintain that 95/5 equity-to-Bitcoin split. Franklin Templeton built in an interim cap of 20% on Bitcoin exposure. If BTC goes on one of its legendary face-melting rallies between rebalancing dates and the allocation drifts way above 5%, the fund won’t let it exceed 20% of total holdings before the next scheduled rebalance brings it back in line. Franklin Templeton’s expanding crypto footprint The firm already runs EZBC, its spot Bitcoin ETF, which held roughly $359 million in assets under management as of mid-June ...