Franklin Templeton to Launch 95% Stock, 5% Bitcoin ETFs

Franklin Templeton is set to introduce two new exchange-traded funds, each designed to allocate 95% of its assets to U.S. equities and 5% to Bitcoin. One ETF will focus on S&P 500 exposure, while the other will target the Nasdaq 100.

SEC Filing Signals Imminent Launch

The asset manager submitted a Form 8-A to the Securities and Exchange Commission (SEC) on October 22, 2026. This type of filing typically indicates that an ETF’s listing on an exchange is imminent.

ETF Details and Tickers

The two new products are the Franklin US Equity Bitcoin DRIP Index ETF, with the ticker FBEQ, and the Franklin US Innovation Bitcoin DRIP Index ETF, under the ticker FIBT. Both funds are slated to list on the Nasdaq exchange. The projected effective date for these ETFs is October 27, 2026, with trading expected to commence shortly thereafter.

Underlying Index Strategy

Internally, FBEQ will track the VettaFi US Large-Cap 500 Bitcoin DRIP Index. Meanwhile, FIBT will follow the VettaFi US Innovation 100 Bitcoin DRIP Index. The “DRIP” in the names refers to dividend reinvestment. Typically, investors reinvest stock dividends to acquire more shares. However, these new funds will redirect those dividend payouts into Bitcoin instead.

Bitcoin Exposure Mechanism

The ETFs will not directly hold Bitcoin. Instead, their exposure to the cryptocurrency will be achieved through other exchange-traded products, including Franklin Templeton’s existing spot Bitcoin ETF, EZBC.

Dynamic Bitcoin Allocation

The initial 5% allocation to Bitcoin is a starting point and not a rigid limit. The proportion of Bitcoin within the portfolio may fluctuate above 5% between rebalancing periods, influenced by dividend inflows or the cryptocurrency’s price movements.

Rebalancing and Caps

On a quarterly basis, the index will rebalance the Bitcoin position, reducing it back to 4.5%. Furthermore, there is a hard cap in place, limiting Bitcoin’s weighting to a maximum of 20%.

Cost Structure

Initial research indicates that the expense ratios for these funds are expected to be competitive, reported as low as 0.09%.

Leveraging Existing Infrastructure

These new ETFs are built upon the existing infrastructure that Franklin Templeton has already established. The firm’s spot Bitcoin ETF, EZBC, has already attracted approximately $335 million in net inflows, demonstrating market interest. EZBC will now serve a dual role, acting as the Bitcoin component for these new equity-focused funds.

Considerations for Innovation ETF

The Franklin US Innovation Bitcoin DRIP Index ETF (FIBT) warrants particular attention. Growth-oriented, technology-heavy companies often distribute smaller dividends compared to broader large-cap stocks. Consequently, the mechanism for accumulating Bitcoin within FIBT may operate at a slower pace than in FBEQ.

Active Management of Bitcoin Holdings

The quarterly rebalancing process also means that these funds will not function as pure buy-and-hold investments for Bitcoin. When Bitcoin’s performance outpaces equities, the index will sell a portion of it to bring the allocation back down to 4.5%, indicating an active management approach to the cryptocurrency’s weighting.

The planned launch timeline suggests that the market’s reaction and the performance of these innovative ETFs will become evident shortly after October 27, 2026.