Franklin launched two U.S. stock dividend reinvestment Bitcoin ETFs

The asset management giant Franklin Templeton announced the launch of two U.S. stock-listed ETFs, namely FBEQ, which tracks the VettaFi U.S. Large Cap 500 Bitcoin Dividend Reinvestment Index, and FIBT, which tracks the VettaFi U.S. Innovation 100 Bitcoin Dividend Reinvestment Index, with management fee rates of 0.09% and 0.19%, respectively.

The initial allocation of the products is approximately 95% U.S. stocks and 5% Bitcoin exposure. The index will reinvest regular and special dividends of the constituent stocks into Bitcoin after the ex-dividend date, thereby increasing Bitcoin's weight over time. To maintain Bitcoin as a secondary position, if Bitcoin's weight exceeds 5% in any quarter, it will be adjusted down to 4.5%. If it exceeds 20% at any closing during the quarter, it will be reset to 4.5% two trading days later. The two funds do not hold Bitcoin directly but gain exposure through Bitcoin ETPs, futures, and options.