While spot Bitcoin ETFs, approved in 2024, continue to attract global interest, other ETFs offering different advantages are also being launched. The latest move in this regard comes from Franklin Templeton.
Global asset management company Franklin Templeton is expected to launch two ETFs that redirect dividend income from investments in US equities to Bitcoin. The new products offer a different investment model between traditional financial markets and crypto assets.
Dividend Income to be Directed Towards Bitcoin!
According to documents Franklin Templeton submitted to the U.S. Securities and Exchange Commission (SEC), the funds’ core strategy is based on investing in shares of U.S. companies and converting the dividends from these shares into Bitcoin investments.
The planned funds include the Franklin US Equity Bitcoin DRIP Index ETF, which is based on an index covering the top 500 large-scale companies in the US. The Franklin US Innovation Bitcoin DRIP Index ETF, on the other hand, follows a different index that focuses on innovation-oriented companies.
According to the statement, the initial target allocation for the funds is set at 95% stocks and 5% Bitcoin. Regular and special dividends from stocks are directed to Bitcoin according to specified rules. This aims to expose investors to the cryptocurrency through the fund without requiring them to purchase Bitcoin separately.
ETF analyst Nate Geraci described the product, designed by Franklin Templeton, as “a smart product and an easy way for everyday investors to gain exposure to BTC.” He also added that this product could offer individual investors easy access to Bitcoin without having to buy the asset separately.
*This is not investment advice.
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