Bitcoin News

Story: Franklin Templeton Files 2 Bitcoin Dividend ETFs With 20% Crypto Cap

By Sydney TheCMO

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How the DRIP Mechanism Works. The dividend reinvestment angle is what makes these ETFs different from anything already trading.

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Bitcoin's Price at a Tricky Moment. The timing is interesting. Bitcoin is currently trading between $62,500 and $64,000 — well off its…

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Bitcoin Hyper's Layer 2 Presale Hits $32 Million. Separate from the ETF news, Bitcoin Hyper has been making noise as a Bitcoin Layer 2 project.

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Franklin Templeton just filed for two new ETFs that do something pretty unusual — instead of reinvesting corporate stock dividends back into shares, they'd funnel that money…

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Both funds start with a 5% Bitcoin allocation. That's the floor. The cap sits at 20%, and the funds would rebalance their holdings quarterly to stay within those bounds.

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The quarterly rebalancing keeps the Bitcoin allocation in check. If Bitcoin runs hard and the allocation drifts above 20%, the fund trims. If it falls below 5%, it buys back in.

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The timing is interesting. Bitcoin is currently trading between $62,500 and $64,000 — well off its all-time high. Analysts have flagged $61,500 as a key support level.

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It's not the only filing in the pipeline, either. There are reportedly over 100 crypto ETF proposals currently working through the SEC review process.

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What Franklin Templeton is doing with the DRIP structure is carving out a niche within that crowded field.

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See also: Bitcoin Slides Four Days Straight as DeFi and Smart-Contract Tokens Take the Worst of It

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Layer 2 solutions for Bitcoin have been a hot area for a while now. The base layer is slow and expensive by design — that's a feature for security, not a bug — but it makes…

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Whether $32 million in presale funds translates into a functioning, widely-used network is a separate question. Presales are easy. Execution is hard.

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Back to Franklin Templeton — the firm's existing EZBC fund sitting at $358.9 million in net assets is probably the best argument for why these new filings deserve to be taken…

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Read also: Strategys Bitcoin Bet Looms Again as Saylor Posts Cryptic Dots Online

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The SEC review clock starts ticking once the preliminary filing is accepted. No fees disclosed. No confirmed launch date beyond the September 1 window.

The Currency Analytics

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