Franklin Templeton has registered two Bitcoin DRIP ETFs for trading on Nasdaq under the tickers FBEQ and FIBT. The total assets of the management company amount to $1.8 trillion. It is expected that both funds will initially allocate 95% of their portfolios to U.S. stocks and 5% to bitcoin investments, using dividends to increase bitcoin exposure. Bitcoin exposure will be capped at 20%, and during quarterly rebalancing, it will be reduced to 4.5% if it exceeds 5%. Both funds will charge an annual management fee of 0.09%. The registration documents state that the funds will follow a dividend reinvestment strategy.
Based on VettaFi indices, the funds will direct regular and special dividends to accumulate bitcoin exposure on the business day after the ex-dividend date. This allows for the accumulation of bitcoin shares as dividends are distributed. Additionally, Franklin Templeton already manages the Franklin Bitcoin ETF, which has $335 million in net inflows, including $7.3 million in a single trading session.
It is important to note that Franklin Templeton first introduced its plans for these funds in June, after which the documentation was revised several times before the final submission to the Securities and Exchange Commission (SEC) on October 22. The funds will use dividends generated by stocks to accumulate bitcoin exposure through exchange-traded products and other permissible instruments. If the bitcoin share exceeds 20% between scheduled reviews, it will be reduced to 4.5% by the end of the second business day after the limit is breached. Franklin Templeton is also actively developing its digital assets business, including a partnership with Bybit, which will allow institutional clients to use BENJI fund shares as collateral for trading loans using USDT and USDC. These moves underscore the company's commitment to integrating cryptocurrencies into traditional investments.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.