Franklin Templeton has completed U.S. Securities and Exchange Commission registration for 2 hybrid exchange-traded funds that allow retail investors to invest indirectly in bitcoin without buying cryptocurrency directly.

On Oct. 26 local time, blockchain media outlet U.Today reported the products are the Nasdaq-listed Franklin US Equity Bitcoin DRIP Index ETF (FBEQ) and the Franklin US Innovation Bitcoin DRIP Index ETF (FIBT).

The core feature is an automatic dividend reinvestment structure. Investors put money into a U.S. equity-focused portfolio, but the cash flow from those stocks is used to buy bitcoin. The structure is designed to give investors exposure to digital assets without directly buying coins on an exchange. Investment professional Nate Geraci called it a "clever product design."

The 2 products differ in holdings and fees. FBEQ focuses on 500 U.S. large-cap companies and has an annual fee of 0.09 percent. FIBT is managed with a focus on technology stocks and targets a composition similar to the Nasdaq 100. Its annual fee is 0.19 percent.

Rules were also set to address bitcoin price volatility. At inception, equities account for 95 percent and bitcoin for 5 percent. The bitcoin weight is then reset to 4.5 percent every 3 months. If the bitcoin price surges and its weight exceeds 20 percent within a quarter, the system records an anomaly and sells the excess on the second business day, adjusting back to about 4.5 percent. The structure shifts gains made during strong bitcoin periods back into equities.

The products are also a follow-on strategy based on Franklin Templeton's existing cryptocurrency infrastructure. The company's spot bitcoin fund EZBC has been managed since early 2024 and recorded net assets of $467.27 million as of late October 2026. Daily trading volume was $5.74 million, and the discount to net asset value was 0.04 percent.

Slowing recent inflows into EZBC were also cited as a backdrop supporting the launch of the new products. That means the market is watching whether demand that had remained in existing spot products may move to a hybrid structure.

Franklin Templeton is targeting conservative money and retirement-account investors with the products. Setting fees starting at 0.09 percent also aligns with that strategy. In particular, the DRIP model separates investors from infrastructure risks in the crypto market such as private key custody or using exchanges. Instead of holding bitcoin directly, it builds bitcoin exposure through dividend income generated from traditional U.S. stock investing, drawing attention to how retail investor money will respond going forward.