Franklin Templeton Seeks to Launch Two Dividend-Fueled Bitcoin ETFs
Summary
- Franklin Templeton is seeking to launch two new exchange-traded funds that use dividends to increase Bitcoin exposure.
- The two ETFs would invest at least 80% of their assets in indexes focused on large-cap US stocks or innovative companies, while using dividends to build additional Bitcoin exposure.
- The Bitcoin allocation would be managed within a 5% to 20% range and is designed to target about 4.5% through quarterly rebalancing.
Forecast Trend Report by Period
Franklin Templeton is seeking 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 would invest at least 80% of their assets in indexes focused on large-cap US stocks or innovative companies. They would 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 and is designed to target about 4.5% through quarterly rebalancing.
Both products are new funds with no operating history. Their effective date is expected to be Sept. 1.
Unfolded said the structure would allow investors to gradually increase Bitcoin exposure through dividends without selling stock holdings, potentially improving access to Bitcoin for traditional finance investors.
