Franklin Templeton Launches Two Blended U.S. Equity and Bitcoin ETFs with Initial 5% Bitcoin Exposure

According to a Franklin Templeton announcement on October 29, the firm has launched two ETFs that combine U.S. equity and bitcoin investments: the Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT), both of which will list on Nasdaq.

Both funds employ a rules-based dividend reinvestment strategy, with an initial asset allocation of 95% U.S. equity index exposure and 5% bitcoin exposure, systematically reinvesting dividends generated by the underlying stocks into bitcoin. The relevant indices assess the bitcoin allocation ratio quarterly to maintain its positioning as a secondary asset allocation. FBEQ tracks approximately 500 large-cap U.S. listed companies with an annual expense ratio of 0.09%, while FIBT tracks 100 large-cap non-financial U.S. companies listed on Nasdaq with an annual expense ratio of 0.19%.