Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) offer distinct U.S. equity exposure while systematically reinvesting dividends into Bitcoin

Franklin Templeton, a global investment leader, announced the launch of two new exchange traded funds (ETFs) that combine U.S. equity exposure with Bitcoin through a rules-based strategy that systematically reinvests dividends into Bitcoin. Both ETFs will be listed on the Nasdaq exchange.

The Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) offer investors two different ways to gain exposure to U.S. equities and Bitcoin within a single ETF. Both ETFs begin with a 95% allocation to their respective equity indexes and a 5% allocation to Bitcoin, with dividends generated by the underlying equities systematically reinvested into Bitcoin. The indexes evaluate Bitcoin exposure quarterly and employ rules designed to maintain Bitcoin as a secondary allocation.

“Bitcoin has matured as an investable asset, supported by deeper market infrastructure, broader adoption and a growing understanding of the role it can play in portfolios,” said Dina Ting, SVP and Head of Index Investments at Franklin Templeton. “As that evolution continues, we believe investors will increasingly look beyond simply gaining access to Bitcoin and consider how they want to incorporate the asset within a broader investment strategy. A systematic approach to building exposure is one way to address this next stage of adoption.”

The two ETFs offer investors distinct equity exposures at a low cost:

• Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index, providing exposure to approximately 500 of the largest U.S. companies by market capitalization alongside Bitcoin, available for 9 basis points.
• Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) tracks the VettaFi U.S. Innovation 100 Bitcoin DRIP Index, providing exposure to 100 of the largest U.S. issuers listed on Nasdaq, excluding financial companies, alongside Bitcoin, available for 19 basis points.

The ETFs will be managed by Dina Ting, Hailey Harris, Joe Diederich and Basit Amin, who collectively manage index-based strategies across Franklin Templeton.

“As the ETF market has matured, innovation has increasingly shifted from providing access to individual asset classes toward finding new ways to combine exposures within a portfolio,” said Jeff Masom, Head of U.S. Distribution and Global Wealth Management Private Markets at Franklin Templeton. “These ETFs bring together U.S. equities and Bitcoin through a differentiated index methodology, expanding the ways we can help clients incorporate digital assets within their broader portfolios.”

Source: Franklin Templeton