Franklin Templeton plans two ETFs mixing 95% US stocks with 5% Bitcoin

what happened

Franklin Templeton intends to list two exchange-traded funds that allocate 95% to US equities and 5% to Bitcoin, according to Crypto Briefing. One fund tracks the S&P 500, the other the Nasdaq 100. A Form 8-A registration was submitted to the SEC on October 22, 2026, a step that usually comes shortly before a listing. Both products, FBEQ and FIBT, are set to trade on Nasdaq, with the effective date projected for October 27, 2026.

Dividends in these funds are not paid out in cash but redirected into Bitcoin under a structure known as DRIP. The funds gain Bitcoin exposure through exchange-traded products, including Franklin's existing spot ETF EZBC, which has reportedly attracted around $335 million in net inflows. The Bitcoin share can rise above 5% between quarterly rebalances, and the index trims it back to 4.5% each quarter, with a 20% ceiling. Reported expense ratios are as low as 0.09%.

why it matters

For FIBT, growth-oriented tech companies often pay smaller dividends, so Bitcoin accumulation there may run slower than in FBEQ. Quarterly trimming means that when Bitcoin outperforms, part of the position is sold, so these funds will not be pure buy-and-hold vehicles. Investors will watch how the products trade once they start.

market impact

Bitcoin and US equities: dividends routed into BTC create indirect demand for the crypto asset through the funds

tags

instruments