Franklin Templeton plans to launch two 'dividend reinvestment Bitcoin' ETFs.

BlockBeats news, October 26 - Asset management giant Franklin Templeton has submitted a Form 8-A filing to the U.S. Securities and Exchange Commission (SEC) to complete Nasdaq listing registration for two new exchange-traded funds. The prospectus shows that the products' effective date is October 27, and the market widely expects them to commence trading in the near term. The two products are the Franklin US Equity Bitcoin DRIP Index ETF (ticker FBEQ) and the Franklin US Innovation Bitcoin DRIP Index ETF (ticker FIBT). The former tracks the VettaFi US Large-Cap 500 Bitcoin DRIP Index, covering approximately 500 of the largest U.S. companies by market capitalization; the latter tracks the VettaFi US Innovation 100 Bitcoin DRIP Index, focusing on the 100 largest non-financial Nasdaq-listed companies. Both funds employ a passive index strategy, with an initial asset allocation of approximately 95% U.S. equities and 5% Bitcoin exposure. It is understood that the core mechanism of the products is "Bitcoin DRIP" (dividend reinvestment in Bitcoin). Unlike traditional dividend reinvestment plans, these two ETFs will not reinvest ordinary dividends and special dividends generated by stocks back into the stocks themselves; instead, at the opening of the next trading day after the ex-dividend date, dividend cash will be automatically used to increase Bitcoin-related exposure. Bitcoin exposure is primarily achieved through Bitcoin exchange-traded products (including Franklin's own spot Bitcoin ETF EZBC), futures, options, or other related instruments, and the funds themselves do not directly hold on-chain Bitcoin. To control risk, the index has established clear rebalancing rules. If Bitcoin's weight exceeds 5% at quarterly rebalancing, it will be reduced to 4.5%; if Bitcoin's weight exceeds 20% during the interval between rebalancings, it must be reduced back to 4.5% within two trading days. The filing shows that FBEQ has a management fee of 0.09% and FIBT has a management fee of 0.19%, and neither charges a 12b-1 fee.