Bitcoin’s (BTC) less than ideal price performance over the past few weeks is not deterring institutions from gaining exposure to the top cryptocurrency by reported market cap. In the latest development, Franklin Templeton has filed for 2 new exchange-traded funds (ETF) that turn corporate dividend into BTC.
Franklin Templeton files for 2 fresh ETFs
In a fresh filing with the U.S. Securities and Exchange Commission, Franklin Templeton shared intent to introduce 2 new ETFs – the Franklin U.S. Equity Bitcoin DRIP Index ETF, and the Franklin U.S. Innovation Bitcoin DRIP Index ETF.
The asset management giant’s move comes at a time when an increasing number of financial advisors are recommending that investors allocate at least 1 to 5 percent of their portfolio to BTC.
What separates Franklin Templeton’s proposed ETFs from the current market products is that it uses corporate dividends to buy exposure to BTC. In this way, it creates an indirect, steady vehicle to generate demand for BTC.
Specifically, both the ETFs are designed to allocate 95 percent funds toward U.S. equities and 5 percent in BTC. The two ETFs will focus on large-cap equities, with the Franklin U.S. Equity Bitcoin DRIP Index ETF geared toward offering broad market exposure.
Similarly, the Franklin U.S. Innovation Bitcoin DRIP Index ETF will offer exposure to growth and innovation-based companies. Any dividend generated from these products will be redirected toward buying BTC ETFs, and other similar products.
In simple words, Franking Templeton’s dividend-powered ETF strategy creates a positive loop involving 5 percent BTC exposure financed entirely by equity dividends. If the U.S. financial watchdog approves these ETFs, they could arrive in the market as early as September 2026.
It should be recalled that just filing for an ETF doesn’t guarantee its approval. That said, seeing an increasing number of institutional players file for investment vehicles that encourage exposure to BTC signals clear reception toward digital assets on Wall Street.
Bitcoin ETFs seeing huge outflows
As of Friday, data from SoSoValue shows that U.S.-based spot BTC ETFs are having a rough time since May 2026. The following table shows that spot BTC ETFs saw $2.43 billion in outflows in May, and have already seen $2.26 billion worth of outflows as of Friday (June 19th).
Despite the constant outflows, the cumulative trading volume in BTC ETFs is fast approaching the $2 trillion milestone. In similar news, on Tuesday, asset manager BlackRock unveiled its new BTC ETF designed to generate monthly yield.
