Franklin Templeton Wins Nasdaq Approval to List Two Bitcoin DRIP ETFs
Summary
- Franklin Templeton said it has won Nasdaq approval to list two ETFs that use U.S. stock dividends for Bitcoin investment.
- The two ETFs will start with 95% U.S. stocks and 5% Bitcoin-related products, with the Bitcoin allocation able to expand to as much as 20%.
- The products feature a 0.09% management fee and use Bitcoin exchange-traded products (ETPs), with dividends designed to gradually raise the Bitcoin allocation.
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Franklin Templeton has won approval to list two exchange-traded funds on Nasdaq that use dividends from U.S. stocks to build Bitcoin exposure.
CoinGape, a crypto-focused media outlet, reported on October 23 that Franklin Templeton’s Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF are set to trade under the tickers FBEQ and FIBT, respectively.
The two products invest in U.S. equities and use the dividends generated by those holdings to increase Bitcoin exposure. Unlike conventional dividend reinvestment strategies, regular and special dividends will be allocated to Bitcoin-related assets instead of being used to buy additional shares.
The initial portfolios will be made up of 95% U.S. stocks and 5% Bitcoin-related products. The Bitcoin allocation can rise to as much as 20% before being rebalanced.
Bitcoin exposure will be gained through Franklin Templeton’s own Bitcoin exchange-traded products, or ETPs. Each ETF carries a management fee of 0.09%.
Franklin Templeton also manages the spot-Bitcoin ETF EZBC. The fund has recorded about $335 million in net inflows so far.
The products are designed to gradually increase Bitcoin exposure by using dividends generated from stock investments.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.