[DigitalToday reporter Chi-gyu Hwang (황치규)] Asset manager Franklin Templeton filed with the U.S. Securities and Exchange Commission for 2 exchange-traded funds that reinvest dividends from U.S. stocks into Bitcoin-linked investments.

Cointelegraph reported on June 19 that the filings are for the Franklin U.S. Equity Bitcoin DRIP Index ETF and the Franklin U.S. Innovation Bitcoin DRIP Index ETF. The two products would begin operations at launch with 95 percent in U.S. stocks and 5 percent Bitcoin exposure.

The Bitcoin exposure is not limited to spot products. The two ETFs could use Bitcoin exchange-traded products, futures, options and Bitcoin collateralized depository receipts. Some Bitcoin-related investments could be held through a wholly owned subsidiary in the Cayman Islands.

The indexes tracked by the two products differ. The U.S. equity ETF tracks an index that includes U.S. large-cap stocks broadly, while the innovation ETF follows an index of the top 100 non-financial companies listed on Nasdaq. Both products are passive index ETFs that track proprietary indexes from Betafi, with the underlying indexes rebalanced quarterly and their constituents adjusted semiannually.