Add as a preferred source on GoogleFranklin Templeton Starts Nasdaq Trading of Two Stock Dividend-Funded Bitcoin ETFs
FBEQ and FIBT start with about 5% Bitcoin exposure, funded by dividends from their U.S. stock holdings.
Franklin Templeton began Nasdaq trading of two ETFs that route dividends from U.S. stocks into Bitcoin (BTC) exposure, pairing equity holdings with a crypto allocation that grows as payouts are reinvested.
The funds, FBEQ and FIBT, track separate indexes: one built around 500 large-cap U.S. stocks and another around 100 innovation-focused companies. Their annual management fees are 0.09% and 0.19%, respectively. Each starts with about 95% in U.S. equities and 5% Bitcoin exposure.
Regular and special dividends from portfolio companies are directed toward Bitcoin exposure after each stock's ex-dividend date, lifting the crypto share over time. To keep Bitcoin as a secondary holding, the rules reduce its weight to 4.5% at a quarterly review if it rises above 5%. If it closes above 20% between reviews, the allocation is reset to 4.5% two trading days later.
The ETFs do not hold Bitcoin directly. They gain exposure through Bitcoin exchange-traded products, futures and options.
Enna Lee
ReporterEnna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.