Franklin Templeton Plans ETF That Reinvests Stock Dividends Into Bitcoin
Summary
- Franklin Templeton said it is preparing to launch an exchange-traded fund (ETF) that combines US stock investing with Bitcoin (BTC) exposure.
- The product would use dividends generated from the S&P 500 or Nasdaq-100 to buy Bitcoin, allowing investors to keep their US equity exposure while gaining indirect exposure to Bitcoin.
- The target Bitcoin allocation is expected to be around 5% of total assets, which would add a measure of digital-asset exposure to an equity-centered portfolio.
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Franklin Templeton, the global asset manager, is preparing to launch an exchange-traded fund that combines US stock exposure with an investment in Bitcoin.
On October 26, Nate Geraci, president of NovaDius Wealth Management, wrote on X that Franklin Templeton is preparing an ETF that would reinvest dividends from US stocks into Bitcoin.
The product would invest in the S&P 500 or the Nasdaq-100 and use the dividends generated by those holdings to buy Bitcoin. That would allow investors to maintain their exposure to US stocks while also gaining indirect exposure to Bitcoin.
The target allocation to Bitcoin is set at about 5% of total assets. Franklin Templeton’s structure would let investors add a slice of digital assets to an equity-heavy portfolio.
Geraci described the product as “a smart product design” by Franklin Templeton. He added that it could give retail investors a simple way to gain exposure to the asset without buying Bitcoin separately.
The firm has not disclosed the ETF’s name or listing schedule.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.