Franklin Templeton announced October 29 two exchange-traded funds combining U.S. stocks with Bitcoin exposure through a dividend-reinvestment strategy.
The Franklin U.S. Equity Bitcoin DRIP Index ETF, ticker FBEQ, follows the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index. The Franklin U.S. Innovation Bitcoin DRIP Index ETF, ticker FIBT, follows a corresponding index covering 100 large Nasdaq-listed U.S. issuers, excluding financial companies.
The company says each fund starts with 95% allocated to its equity index and 5% to Bitcoin. Dividends generated by the stocks are systematically directed into Bitcoin, rather than reinvested in the same stocks.
The indexes review Bitcoin exposure quarterly and include rules intended to keep it a secondary allocation, according to the announcement.
Franklin listed costs of nine basis points for FBEQ and 19 for FIBT, equivalent to 0.09% and 0.19%, respectively. Both funds are slated for Nasdaq listing.
The launch establishes the products and their stated design. It does not demonstrate future returns or determine whether either fund suits a particular investor.
Sources: Franklin Templeton — October 29 ETF Announcement via Business Wire: https://www.nasdaq.com/press-release/franklin-templeton-launches-two-etfs-combining-us-equities-and-bitcoin-through