TLDR
- Franklin Templeton registered two Nasdaq ETFs that combine US stock investments with Bitcoin exposure.
- Both indexes started with a 5% Bitcoin allocation and direct stock dividends into the cryptocurrency.
- The proposed FBEQ and FIBT funds carry annual fees of 0.09% and 0.19%, respectively.
- The indexes reduce Bitcoin exposure to 4.5% when it exceeds 5% at quarterly reviews.
- The October 22 registration does not confirm that either ETF has begun trading.
Franklin Templeton registered two Nasdaq exchange-traded funds that combine US stocks with Bitcoin exposure. The funds would direct stock dividends toward Bitcoin instead of buying more shares. Securities filings dated October 22 outline their structure, fees, and investment limits.
Franklin Templeton Details Two Nasdaq Funds
The Franklin US Equity Bitcoin DRIP Index ETF would trade under FBEQ. The Franklin US Innovation Bitcoin DRIP Index ETF would use FIBT. Both appear in a Form 8-A registration filed with the Securities and Exchange Commission.
The first fund tracks a VettaFi index based on large US companies. The second follows an innovation index covering 100 companies, with greater technology exposure. Annual fees stand at 0.09% for FBEQ and 0.19% for FIBT.
Both underlying indexes began with 95% in equities and 5% in Bitcoin. They direct regular and special stock dividends into Bitcoin after the dividend date. Separately, BlackRock filed a Bitcoin ETF with downside protection.
That proposal uses a different approach, linking potential gains and losses to Bitcoin-related assets. Franklin Templeton’s funds instead combine ordinary stock holdings with a separate Bitcoin allocation. Investors would gain indirect cryptocurrency exposure without placing separate Bitcoin purchase orders.
The indexes review Bitcoin exposure every quarter. When it exceeds 5%, they reduce it to 4.5%; holdings below that level remain unchanged. A separate rule cuts Bitcoin exposure to 4.5% if its share passes 20% between reviews.
Bitcoin ETFs Face Fresh Withdrawals
The filings arrive during a difficult period for existing spot Bitcoin products. US funds recorded $635.6 million in withdrawals on October 22, according to recent Bitcoin ETF flow figures. BlackRock’s IBIT alone accounted for about $254 million of the withdrawals.
Another $137.9 million left spot Bitcoin ETFs on October 23. Bitcoin traded around $79,800 on October 26, following weekend price swings below $80,000. Market movements do not establish whether the proposed funds have begun trading.
The prospectuses allow exposure through Bitcoin exchange-traded products, futures, options, and certain depositary receipts. They warn that Bitcoin prices can fluctuate sharply, adding risk to equity positions. A recent Bitcoin market update described further selling before the Federal Reserve meeting. The prospectuses carry an October 27 date, but the filing does not confirm a trading start. The SEC has not approved or rejected the securities or endorsed the disclosed information.
