Key Takeaways
- • Franklin Templeton launched two Nasdaq-listed ETFs, the Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT), that pair U.S. equities with a 5% Bitcoin allocation.
- • Dividends generated by the underlying equities are systematically reinvested into Bitcoin, and the indexes reassess Bitcoin exposure quarterly to keep it a secondary allocation.
- • FBEQ tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index at 9 basis points; FIBT tracks the VettaFi U.S. Innovation 100 Bitcoin DRIP Index, excluding financial companies, at 19 basis points.
- • Both funds gain Bitcoin exposure indirectly through an affiliated bitcoin exchange-traded product and derivatives rather than holding bitcoin directly.
- • Franklin Templeton, with over $1.79 trillion in AUM as of September 30, 2026, positions the launch as a systematic approach to incorporating digital assets within broader portfolios.
Summary
Franklin Templeton announced the launch of two new exchange-traded funds that combine U.S. equity exposure with Bitcoin through a rules-based strategy, according to a Business Wire release dated October 29, 2026. Both ETFs will be listed on the Nasdaq exchange.
The Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) each begin with a 95% allocation to their respective equity indexes and a 5% allocation to Bitcoin. Dividends generated by the underlying equities are systematically reinvested into Bitcoin. The indexes evaluate Bitcoin exposure quarterly and apply rules intended to keep Bitcoin as a secondary allocation.
FBEQ tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index, providing exposure to approximately 500 of the largest U.S. companies by market capitalization, at a fee of 9 basis points. FIBT tracks the VettaFi U.S. Innovation 100 Bitcoin DRIP Index, covering 100 of the largest U.S. issuers listed on Nasdaq and excluding financial companies, at 19 basis points.
The funds do not hold bitcoin directly. Per the prospectus language in the release, they obtain indirect exposure by investing in shares of an affiliated bitcoin exchange-traded product and derivatives. The release flags risks including price volatility, regulatory uncertainty, operational disruptions, index and technology failures, blockchain events, and cybersecurity threats. Both funds are newly organized and have a limited operating history, and FIBT's disclosure additionally notes the increased volatility associated with concentration in certain securities, regions or industries.
Dina Ting, SVP and Head of Index Investments at Franklin Templeton, said Bitcoin has matured as an investable asset and that investors will increasingly consider how to incorporate it within a broader strategy, with systematic exposure as one approach. Jeff Masom, Head of U.S. Distribution and Global Wealth Management Private Markets, described the ETFs as bringing together U.S. equities and Bitcoin through a differentiated index methodology. The funds will be managed by Ting, Hailey Harris, Joe Diederich and Basit Amin, who collectively manage index-based strategies at the firm.
The Franklin U.S. Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin U.S. Innovation Bitcoin DRIP Index ETF (FIBT) each begin with a 95% allocation to their respective equity indexes and a 5% allocation to Bitcoin. Dividends generated by the underlying equities are systematically reinvested into Bitcoin. The indexes evaluate Bitcoin exposure quarterly and apply rules intended to keep Bitcoin as a secondary allocation.
FBEQ tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index, providing exposure to approximately 500 of the largest U.S. companies by market capitalization, at a fee of 9 basis points. FIBT tracks the VettaFi U.S. Innovation 100 Bitcoin DRIP Index, covering 100 of the largest U.S. issuers listed on Nasdaq and excluding financial companies, at 19 basis points.
The funds do not hold bitcoin directly. Per the prospectus language in the release, they obtain indirect exposure by investing in shares of an affiliated bitcoin exchange-traded product and derivatives. The release flags risks including price volatility, regulatory uncertainty, operational disruptions, index and technology failures, blockchain events, and cybersecurity threats. Both funds are newly organized and have a limited operating history, and FIBT's disclosure additionally notes the increased volatility associated with concentration in certain securities, regions or industries.
Dina Ting, SVP and Head of Index Investments at Franklin Templeton, said Bitcoin has matured as an investable asset and that investors will increasingly consider how to incorporate it within a broader strategy, with systematic exposure as one approach. Jeff Masom, Head of U.S. Distribution and Global Wealth Management Private Markets, described the ETFs as bringing together U.S. equities and Bitcoin through a differentiated index methodology. The funds will be managed by Ting, Hailey Harris, Joe Diederich and Basit Amin, who collectively manage index-based strategies at the firm.
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