Franklin Templeton Launches Two Bitcoin ETFs Combining U.S. Stocks and Bitcoin
Wall Street meets Bitcoin as Franklin Templeton introduces two new Nasdaq-listed ETFs that automatically reinvest stock dividends into Bitcoin exposure.
Franklin Templeton is bringing a new twist to traditional investing with the launch of two exchange-traded funds (ETFs) that combine U.S. stocks with Bitcoin.
The Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) introduce a simple concept: take dividends generated by major U.S. companies and systematically reinvest them into Bitcoin exposure.
It’s another example of how Bitcoin is finding its way into the heart of traditional finance.
How Does It Work?
Both ETFs start with a 95% allocation to U.S. stocks and 5% to Bitcoin exposure.
Here’s where things get interesting. Instead of distributing stock dividends to shareholders, the funds use those dividends to build Bitcoin exposure automatically.
The process follows a rules-based strategy, with Bitcoin allocations reviewed quarterly to maintain cryptocurrency as a secondary component of each fund.
The ETFs gain Bitcoin exposure indirectly through an affiliated Bitcoin exchange-traded product and derivatives.
Essentially, Franklin Templeton has combined traditional stock ownership with a systematic Bitcoin accumulation strategy.
Two ETFs, Two Different Approaches
Franklin Templeton is offering two versions of the strategy, each focused on a different segment of the U.S. stock market.
FBEQ – Franklin U.S. Equity Bitcoin DRIP Index ETF
Tracks approximately 500 of America’s largest publicly traded companies alongside Bitcoin exposure. The fund has an annual expense ratio of 0.09%.
FIBT – Franklin U.S. Innovation Bitcoin DRIP Index ETF
Tracks 100 major U.S. issuers listed on Nasdaq, excluding financial companies, alongside Bitcoin exposure. The fund has an annual expense ratio of 0.19%.
Both funds will trade on Nasdaq and are managed by Franklin Templeton’s index investment team.
Wall Street Continues to Embrace Bitcoin
Franklin Templeton’s announcement reflects a broader evolution in how major financial institutions are approaching digital assets.
Dina Ting, Senior Vice President and Head of Index Investments at Franklin Templeton, highlighted Bitcoin’s growing market infrastructure, wider adoption and expanding role in financial portfolios.
Rather than treating Bitcoin as a standalone asset, financial institutions are increasingly exploring ways to incorporate it into familiar investment products.
With $1.79 trillion in assets under management as of September 30, 2026, Franklin Templeton is among the major global asset managers developing these products.
Why This Matters
The interesting part of this launch goes beyond two new ETFs.
Traditionally, stock dividends have been distributed as cash or reinvested into additional shares. Franklin Templeton is introducing a different approach by directing those dividends toward Bitcoin exposure.
That creates a connection between two major financial markets: established U.S. equities and digital assets.
It also signals a shift in how Bitcoin is being packaged by Wall Street. Financial institutions are moving beyond standalone Bitcoin ETFs and introducing products that integrate cryptocurrency into traditional investment structures.
The bigger picture? Bitcoin is becoming another component of the financial products offered by some of the world’s largest asset managers.
Franklin Templeton’s latest launch is another milestone in the ongoing convergence of traditional finance and the Bitcoin economy.
Source: Franklin Templeton / Business Wire, October 29, 2026.