Franklin Templeton Clears Final Regulatory Hurdle for ETFs Converting Stock Dividends to Bitcoin

Franklin Templeton has filed forms to launch two exchange-traded funds that reinvest stock dividends into bitcoin. The funds track indices holding large U.S. companies, with 5% allocated to bitcoin. Each dividend payment is automatically converted into bitcoin at market open the day after the ex-date. The bitcoin allocation is capped at 5% and rebalanced quarterly, with limits triggered if exposure exceeds 20% between rebalances. The ETFs gain bitcoin exposure through exchange-traded products, futures, options, or depositary receipts rather than holding bitcoin directly on-chain.