Franklin Templeton, a global investment management giant with an asset management scale of $1.8 trillion, has been approved to launch two new bitcoin-oriented ETF funds, which will trade on the NASDAQ stock exchange.
According to documents submitted to the U.S. Securities and Exchange Commission (SEC), the company has filed registration applications for two investment products that will systematically convert U.S. stock dividends into Bitcoin exposure.
These two new products are named Franklin US Equity Bitcoin DRIP Index ETF ( FBEQ ) and Franklin US Innovation Bitcoin DRIP Index ETF ( FIBT ) respectively.
These two products are different from traditional Bitcoin ETF. They do not merely track the price of this top cryptocurrency; rather, they aim to combine traditional stock investment with a Bitcoin dividend reinvestment strategy.
Specifically, these products will allocate 95% of the funds to U.S. stocks and 5% to Bitcoin-related assets.
These products do not reinvest stock dividends into additional shares; instead, they use the dividends to increase their exposure to Bitcoin over time.
These two investment tools will track indices compiled by VettaFi. Among them, FBEQ will track large-cap U.S. companies, while FIBT will track innovative stocks.
Franklin Templeton Expands Its Bitcoin Exposure
The latest announcement by the company is another step in Franklin Templeton's ongoing expansion of its presence in the cryptocurrency sector.
This investment giant currently offers spot Bitcoin investment products Franklin Bitcoin ETF ( EZBC ), and to date, it has recorded a net inflow of approximately $335 million.
The difference between these two newly registered ETFs lies in that they introduce cryptocurrency exposure into traditional stock investment strategies.
