From CryptoPotato · By Wayne Jones
Franklin Templeton has registered two proposed exchange-traded funds with Nasdaq that would invest in US equities and direct dividend income into Bitcoin.
The strategy could give traditional stock investors a way to build Bitcoin exposure through dividends rather than having to sell shares or make separate cryptocurrency purchases.
Franklin Templeton’s Proposed ETFs Target 5% Bitcoin Allocation
Nate Geraci, president of NovaDius Wealth Management, drew attention to the filings in an X post on October 26, describing the products as ETFs that hold US stock and reinvest dividends into Bitcoin.
“Basically like investing in S&P 500 & Nasdaq 100 w/ dividends going to BTC,” Geraci wrote, adding that the funds were “targeting 5% BTC allocation.” He called the structure smart product design and suggested it could give everyday investors an easier route to Bitcoin exposure.
The filing names the products the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF. Both are listed for registration on Nasdaq under Franklin Templeton ETF Trust.
The registration document incorporates a description of the funds’ shares from a post-effective amendment filed with the Securities and Exchange Commission (SEC) on October 22, but the Form 8-A itself does not establish that trading has begun or provide a launch date.
The proposed structure links conventional equity investing with Bitcoin accumulation. Rather than relying on investors to allocate part of their paychecks or portfolio balances to crypto, the strategy would channel dividends from the stock holdings into the digital asset. The targeted allocation cited by Geraci gives investors an indication of the intended exposure, although the post does not explain how that target would be maintained or how the funds would handle changing Bitcoin prices.
Bitcoin’s Price Weakness Adds Another Consideration
CoinGecko data at the time of writing put the OG crypto at just under $80,000, down by slightly more than 1% in the last 24 hours and nearly 4% in seven days. Its 30-day decline stands at over 5%, while the asset is still about 29% lower than a year ago and 37% below its all-time high above $126,000.
Liquidation figures from Coinglass point to pressure on leveraged traders, with roughly $33 million in Bitcoin positions liquidated during the previous 24 hours. Long positions accounted for about $27 million of that total, meaning traders betting on higher prices took most of the losses.
Meanwhile, existing spot BTC ETFs took a hit last Friday, bleeding more than $635 million to cut down weekly total inflows to about $442 million, the first green week since the start of October. That amount was buoyed by two days, Monday and Wednesday, that drew more than half a billion each.