Franklin Templeton Registers Two Nasdaq ETFs Pairing US Stocks With Bitcoin
Key Takeaways
- •The two proposed funds, FBEQ and FIBT, would channel regular and special stock dividends into Bitcoin instead of reinvesting the proceeds in additional shares.
- •FBEQ charges a 0.09% annual fee and tracks a VettaFi index of large US companies, while FIBT carries a 0.19% fee and follows an innovation index covering 100 companies with greater technology exposure.
- •Both indexes began with 95% of assets in equities and 5% in Bitcoin, reviewing exposure quarterly and trimming it to 4.5% whenever it exceeds 5%.
- •US spot Bitcoin ETFs saw $635.6 million in withdrawals on October 22, including roughly $254 million from BlackRock's IBIT, followed by $137.9 million in outflows on October 23.
- •Neither FBEQ nor FIBT has begun trading, as the SEC has neither approved nor rejected the securities and no Nasdaq listing date has been announced.
Franklin Templeton has registered two Nasdaq exchange-traded funds designed to combine United States stock investments with Bitcoin exposure. Under the proposed structure, the funds would channel stock dividends into Bitcoin instead of using the proceeds to buy additional shares. Franklin Templeton, a unit of Franklin Resources, would list both products on Nasdaq. Securities filings dated October 22 outline the funds' structure, fees, and investment limits, though the registration does not confirm that either ETF has begun trading. The filings are the latest example of a traditional asset manager pairing standard equity mechanics with a Bitcoin allocation in a single listed product.
Franklin Templeton Details Two Nasdaq Funds
The Franklin US Equity Bitcoin DRIP Index ETF would trade under the ticker FBEQ, while 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. A Form 8-A is a standard SEC registration for securities being listed on a national exchange; the form itself does not establish when, or whether, trading begins.
The first fund tracks a VettaFi index built 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.
The DRIP label in both fund names refers to a dividend reinvestment plan, the mechanism through which shareholder payouts would be redirected. Both underlying indexes began with 95% of assets in equities and5% in Bitcoin. Regular and special stock dividends are directed into Bitcoin after each dividend date. Separately, BlackRock filed a Bitcoin ETF with downside protection. That proposal takes a different approach, linking potential gains and losses to Bitcoin-related assets. Franklin Templeton's funds, by contrast, combine ordinary stock holdings with a separate Bitcoin allocation, giving investors indirect cryptocurrency exposure without requiring separate Bitcoin purchase orders.
The indexes review Bitcoin exposure every quarter. Whenever it exceeds 5%, they reduce it to 4.5%, while holdings below that level remain unchanged. A separate rule cuts Bitcoin exposure to 4.5% if its share surpasses 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. The outflow figures track existing spot products, while the Franklin Templeton filings concern funds that have not begun trading.
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 neither approved nor rejected the securities, nor has it endorsed the disclosed information. Any launch of FBEQ or FIBT would still require SEC approval and a Nasdaq listing date, neither of which has been announced.
