Franklin Templeton’s Bitcoin ETFs will pair a small crypto allocation with U.S. stocks—and use stock dividends to build Bitcoin exposure. The asset manager launched the two funds on October 29, 2026, with starting allocations of 95% equities and 5% Bitcoin , using a rules-based dividend reinvestment strategy.
Key takeaways
FBEQ and FIBT combine different U.S. stock portfolios with Bitcoin exposure.
Equity dividends feed the Bitcoin allocation, which undergoes quarterly review.
The funds will list on Nasdaq, charging 9 and 19 basis points, respectively.
How Franklin Templeton’s Bitcoin ETFs combine stocks and crypto
The two funds share a dividend reinvestment approach but track different equity portfolios. Both use VettaFi indexes designed to keep Bitcoin as a secondary allocation.
The Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index. The equity portion offers access to roughly 500 of the biggest U.S. firms, ranked by market capitalization.
The Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) follows the VettaFi U.S. Innovation 100 Bitcoin DRIP Index. Bitcoin is paired with access to 100 of the biggest non-financial U.S. issuers that trade on Nasdaq.
“DRIP” refers to dividend reinvestment . Rather than directing stock payouts back into additional equity shares, the strategy routes them into Bitcoin exposure. Instead of holding Bitcoin outright, the funds gain this exposure via exchange-traded products , such as Franklin’s already-operating spot Bitcoin ETF, EZBC.
The initial 5% Bitcoin weight is not a fixed ceiling. Dividend inflows and price gains can lift it between rebalances. The indexes review exposure quarterly, trimming the Bitcoin position to 4.5% , with a 20% hard cap on its weight.
Nasdaq listing, fees and portfolio managers
Both funds will list on Nasdaq . FBEQ charges 9 basis points, while FIBT charges 19 basis points.
Ahead of the launch, Franklin Templeton submitted a Form 8-A to the SEC on October 22, 2026. Dina Ting, Hailey Harris, Joe Diederich and Basit Amin, who together oversee index-based strategies at the firm, will manage the funds.
Franklin Templeton’s case for combining the exposures
Franklin Templeton positions its Bitcoin ETFs as a way to incorporate digital assets into broader portfolios, rather than simply provide standalone access. Its executives link the approach to Bitcoin’s development as an investable asset and to changes in ETF design.
“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.
Ting said investors would increasingly consider how to incorporate Bitcoin within a broader investment strategy, describing systematic exposure-building as one approach.
According to Jeff Masom, Head of U.S. Distribution and Global Wealth Management Private Markets at Franklin Templeton, ETF innovation has progressively shifted from providing access to single asset classes toward blending exposures within portfolios. “These ETFs bring together U.S. equities and Bitcoin through a differentiated index methodology,” he said.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
