Franklin Templeton Plans to Launch BTC Dividend ETF, While Bitcoin Network Activity Hits a 2026 High

Franklin Templeton is the next Wall Street firm to develop new Bitcoin products. The asset management giant plans to launch two funds designed to buy Bitcoin with the dividends from a basket of stocks.

Moreover, data from CryptoQuant shows that the Bitcoin network is busier than it's been all year.

TL;DR

• Franklin Templeton filed for two ETFs that route dividends from a stock portfolio into Bitcoin rather than paying them out in cash or buying more shares, with a launch targeted for around September.

• CryptoQuant data shows Bitcoin's network activity at its highest level since late 2024, with daily transactions above 800,000.

Franklin Templeton Plans to Launch Bitcoin Dividend ETF 🏦

I've written before about how Wall Street keeps inventing new ways to get Bitcoin in front of investors who can't or won't buy it directly. Most of those products do the same basic job in slightly different packaging, but this one’s different enough that I found it worth mentioning.

Franklin Templeton, which manages around $1.78 trillion, filed for two ETFs that take the dividends paid by a portfolio of stocks and route that cash into Bitcoin-linked investments, rather than paying it out to shareholders or reinvesting it into more shares.

The two funds are the Franklin US Equity Bitcoin DRIP Index ETF and the Franklin US Innovation Bitcoin DRIP Index ETF, and the firm is aiming to launch them around September.

DRIP stands for Dividend Reinvestment Plan, one of the oldest and most boring tools in investing. Normally, those dividends buy you more shares of the same companies. Franklin Templeton has taken that mechanism and pointed it at Bitcoin instead, which is pretty interesting.

The structure starts at roughly 95% large-cap US equities and 5% Bitcoin, with a hard ceiling of 20% on the Bitcoin portion and rebalancing that trims the position back toward 5% when dividends push it higher. 

So an investor holding what looks like a fairly ordinary equity fund ends up accumulating Bitcoin in the background.

There's a whole category of investors, particularly on the institutional side, who are blocked from buying Bitcoin directly, whether by mandates, compliance rules, or investment committees that won't sign off on it. A wrapper like this gives them exposure through a side door, funded by income they would have received anyway. 

As far as current filings show, this appears to be one of the first U.S. ETF structures of its kind.

Bitcoin Network Activity Hits Its Highest Level of 2026 📊

According to a new report from CryptoQuant, Bitcoin's network activity index has climbed back above its long-term trend for the first time since mid-2024, reaching its highest level since late 2024 and sitting only about 7% below its all-time high. 

Daily transactions have surpassed 800,000, more than double the lows seen in 2025.

The interesting bit is that this is happening during a stretch of obvious price weakness. Activity and price usually move together. But when they pull apart, they are worth having a look at.

Interestingly, network activity has mainly been driven by small transactions. 

CryptoQuant points out that transfers under 0.01 BTC now make up around 80% of daily transactions, up from about 44% in 2023, with a lot of that coming from protocol activity like Runes, Ordinals, and other data being written to the chain rather than money changing hands.

So what do you make of it? 

I see Bitcoin as money first, but Bitcoin has the potential to be so much more, such as acting as the base infrastructure for a wide range of financial products.

Highly speculative on-chain assets like Runes and Ordinals might not be ushering in a new era of finance on Bitcoin, but they do show that there’s more to Bitcoin than just the price. 

Elsewhere in Bitcoin 📖

A quick look at what else has been happening in Bitcoin:

• BlackRock's iShares Bitcoin Premium Income ETF (BITA) began trading on Nasdaq

• The CLARITY Act continues to move toward a full Senate floor vote

• Congress advanced a housing bill that would bar the Federal Reserve from issuing a CBDC through 2030

Your fellow stacker in sats,

Patrick Lowry

PS: If you want to see how the value of goods and services changes when priced in Bitcoin, check out the Samara Bitcoin CPI. It might give you a new perspective on holding Bitcoin on your company's balance sheet or just as an individual.

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Nothing here is a solicitation, offer, or recommendation to buy or sell any asset or to use any service. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.