Franklin Templeton Moves to Launch Two Dividend-Driven Bitcoin ETFs
Summary
- Franklin Templeton is moving to launch two new ETF products that use dividends to increase Bitcoin exposure.
- The two ETF products would invest at least 80%% in indexes focused on large-cap US stocks or innovative companies, while using dividends to add Bitcoin exposure.
- The Bitcoin allocation would be managed within a 5%% to 20%% range and target about 4.5%% through quarterly rebalancing, a structure that Unfolded said could improve traditional finance investors' access to Bitcoin.
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Franklin Templeton is moving to launch two new exchange-traded funds that would use dividends to increase Bitcoin exposure.
Unfolded reported on June 19 that the global asset manager recently filed documents with the US Securities and Exchange Commission for the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF.
The two ETFs are designed to invest at least 80% of their assets in indexes focused on large-cap US stocks or innovative companies. They would then use dividends to build additional Bitcoin exposure.
The Bitcoin exposure would be obtained through exchange-traded products, futures and options.
The Bitcoin allocation would be managed within a 5% to 20% range, with quarterly rebalancing designed to maintain a target of about 4.5%.
Both products are new funds with no operating history. Their effective date is scheduled for Sept. 1.
Unfolded said the structure would let investors gradually increase Bitcoin exposure through dividends without selling stock holdings. It added that the products could improve access to Bitcoin for traditional finance investors.
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