An original ETF. Asset manager Franklin Templeton has become a key player in the crypto sector and the firm has just filed a new application with the SEC, the American financial markets regulator. Objective: to offer two Bitcoin DRIP funds which reinvest the dividends from the shares they hold in BTC. And the idea is rather attractive.
Key Points
Franklin Templeton has filed two DRIP Bitcoin ETF applications with the US SEC The DRIP mechanism reinvests stock dividends in Bitcoin rather than stocks BTC exposure starts at 5% and cannot exceed 20% during quarterly rebalances
Franklin Templeton files two new Bitcoin ETFs
Franklin Templeton seems determined to ride the wave of BTC ETFs. And this, even if its EZBC cash fund remains far behind that of the undisputed leader BlackRock, with net inflows which have just crossed the billion dollars. A dynamic that in no way slows down its crypto ambitions. We are thinking of the very recent launch of its division Franklin Cryptodedicated to institutional investors, or the integration of its tokenized monetary fund BENJI into the MoonPay Trade platform. To this already busy schedule are now added two new requests for BTC ETFfiled with the SEC. Two funds called “Bitcoin DRIP”, the principle of which is to reinvest share dividends in BTC.
“These funds aim to track the VettaFi US Large-Cap 500 Bitcoin DRIP Index and its innovation variant. Thanks to this system, dividends from equity securities held are automatically and systematically reinvested in Bitcoin. »
Description from the form filed with the SEC – Source: sec.gov
The two funds concerned are named Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF. Both therefore rely on VettaFi indiceslike the US large-cap 500 for the first. Concretely, these funds hold a basket of American stocks. Rather than putting the dividends paid by these companies back into the stocks themselves, the DRIP (Dividend Reinvestment Plan) mechanism redirects them into bitcoin. The initial exposure to BTC is set at 5%, without ever being able to exceed 20% during quarterly rebalancing. The logic is clever: transform a traditional income stream, dividends, into progressive accumulation of Bitcoin, without affecting the invested share capital. Enough to appeal to investors tempted by measured crypto exposure, framed by clear ceilings. After BlackRock and its dividend BTC ETFhere is a new example of Wall Street’s creativity around BTC.