- Franklin Templeton filed SEC Form 8-A on October 22 to register shares of two Bitcoin DRIP ETFs, FBEQ and FIBT, for Nasdaq listing.
- Both funds start with 95% in U.S. equities and 5% in Bitcoin-related instruments, redirecting stock dividends into BTC exposure rather than paying shareholders.
- Bitcoin exposure is capped at 20%; the cap triggers a rebalance back to 4.5% if breached. Management fees are 0.09% for both funds.
- The ETFs track VettaFi-constructed indexes, FBEQ covers 500 large-cap U.S. companies and FIBT covers 100 innovation-focused Nasdaq-listed firms.
Franklin Templeton, the global asset management firm with $1.8 trillion in assets, has been approved by Nasdaq to list two newly designed Bitcoin DRIP (Dividend Reinvestment) ETFs. It has filed a registration document (SEC Form 8-A) with the SEC on Oct 22, 2026 to register the Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and Franklin US Innovation Bitcoin DRIP Index ETF (FIBT).
What Are DRIP Funds?
These both funds use a systematic methodology, using indexes developed by VettaFi. The funds start with 95% exposure to U.S. equities and 5% exposure to Bitcoin related instruments.
JUST IN: 🇺🇸 $1.8 trillion Franklin Templeton has received approval from Nasdaq to list two new Bitcoin ETFs with a DRIP strategy 👀
The ‘FBEQ’ and ‘FIBT’ ETFs will reinvest dividends from US stocks into Bitcoin! 🚀 https://t.co/o2115UHu9r
— Bitcoin Magazine (@BitcoinMagazine) October 23, 2026
Instead of paying out dividend income from stocks, the funds will reinvest this into further Bitcoin exposure on the day following the ex-dividend date of each stock. This means investors receive passive Bitcoin growth through the income that would otherwise be paid out from the fund.
Bitcoin Cap, Fee & Index Differences
Bitcoin exposure is capped at 20%. If the allocation rises above 5%, the strategy rebalances it down to 4.5%, limiting maximum Bitcoin concentration while allowing the position to grow organically.
Both funds charge a management fee of 0.09%. FBEQ tracks an index of 500 large-cap U.S. companies, mirroring broad market exposure. FIBT targets 100 innovation-focused companies listed on Nasdaq.
SEC Crypto Task Force Engagement
Franklin Templeton met the SEC’s Crypto Task Force to discuss whether its tokenized products, including the FOBXX government money market fund and potential tokenized ETFs, require additional relief under the Investment Company Act of 1940 to participate in the Innovation Exemption environment.
The firm’s existing spot Bitcoin ETF, EZBC, has attracted $335 million in total inflows, including $7.3 million in the days before the DRIP ETF filing.
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