Franklin Templeton’s two Bitcoin DRIP Exchange Traded Funds (ETFs), FBEQ and FIBT, have completed their registration with Nasdaq and their prospectuses have become effective, according to SEC filings. The registration was completed on October 22nd, with the prospectuses becoming effective on October 27th.
These ETFs are designed to track specific Bitcoin DRIP indices. The FBEQ ETF will follow the VettaFi US Large-Cap 500 Bitcoin DRIP Index, and the FIBT ETF will track the VettaFi US Innovation 100 Bitcoin DRIP Index. Both ETFs have an initial allocation strategy of approximately 95% in US stocks and 5% in Bitcoin exposure. A key feature of these ETFs is the automatic reinvestment of dividends directly into Bitcoin exposure.
The Bitcoin DRIP mechanism involves reinvesting ordinary and special dividends into Bitcoin exposure on the day following the ex-dividend date. This differs from traditional ETFs where dividends are typically reinvested in stocks. This structure is intended to gradually increase the Bitcoin weighting within the ETFs over time. The Bitcoin exposure within these ETFs can include Bitcoin-related Exchange Traded Products (ETPs), options, futures, and depositary receipts.
The FBEQ ETF has an annual fee of 0.09%, and the FIBT ETF has an annual fee of 0.19%. The prospectuses indicate that the VettaFi US Large-Cap 500 Bitcoin DRIP Index components are selected based on factors including market capitalization, with components having a market capitalization range between $5.5 trillion and $10.2 trillion as of September 30, 2026. The VettaFi US Innovation 100 Bitcoin DRIP Index will include 100 components. The ETFs are designed with quarterly rebalancing mechanisms, aiming for a target Bitcoin weight of 4.5% and maintaining thresholds for Bitcoin weight between 5% and 20%.
Despite completing registration and having effective prospectuses, the ETFs have not yet begun trading. The official first trading day and the specific Bitcoin ETP that may be utilized by the ETFs have not yet been disclosed. The exact composition of the VettaFi US Large-Cap 500 Bitcoin DRIP Index and the VettaFi US Innovation 100 Bitcoin DRIP Index at launch also remains to be detailed.
This development represents a new compliance channel for Bitcoin exposure within traditional US equity investment products, potentially expanding access to institutional and retirement accounts. The structure aims to control volatility through defined weight caps for Bitcoin exposure.
Why This Matters
The materials describe a narrow update: Franklin Templeton’s two Bitcoin DRIP ETFs, FBEQ and FIBT, have completed their Nasdaq registration (Form 8-A) and their prospectuses have become effective (October 27th). The official first trading day for FBEQ and FIBT.
Broader Context
Source materials place the factual news in this context: Franklin Templeton applied for two ‘Bitcoin DRIP’ ETFs in June.
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