Franklin Templeton launched two exchange-traded funds on Nasdaq on October 29, 2026, combining US equities with indirect Bitcoin exposure. The funds, FBEQ and FIBT, do not hold Bitcoin on-chain, utilizing futures, options, and affiliated products instead.
The strategy features a strict 5% cap on Bitcoin exposure. Dividends from equity holdings are automatically reinvested into Bitcoin, but the funds perform quarterly rebalancing to trim the crypto portion back to 4.5% if it exceeds the 5% threshold.
An emergency mechanism triggers if the Bitcoin allocation reaches 20% between scheduled rebalances, requiring a reset to 4.5% within two business days. This systematic approach effectively harvests gains from the crypto portion to reinvest in stocks.
FBEQ tracks the VettaFi U.S. Large-Cap 500 Bitcoin DRIP Index with an expense ratio of 0.09%. FIBT follows the VettaFi U.S. Innovation 100 Bitcoin DRIP Index and carries a 0.19% fee.
