Franklin Templeton filed two dividend reinvestment ETFs allocating 95% equities and 5% Bitcoin—where dividends automatically purchase Bitcoin—targeted to launch in September backed by $1.3T AUM. Morgan Stanley amended filings for 14-basis-point Ethereum and Solana spot ETFs, sparking a fee war with BlackRock’s Bitcoin spot ETF and pressuring market share.
Franklin Templeton has filed two dividend reinvestment ETFs that will hold a 95% equity and 5% Bitcoin allocation. Dividends generated by the equity sleeve will be automatically converted into Bitcoin and added to the fund, leveraging the firm’s $1.3 trillion in assets under management and aiming for a September launch.
Morgan Stanley has amended its ETF filings to offer Ethereum and Solana spot products at 14 basis points, undercutting existing fees in the market. This move mirrors its recent entry into the Bitcoin spot ETF space with the lowest fee in the industry, positioning the bank as a fierce competitor on price.
These developments intensify competition for BlackRock, whose spot Bitcoin ETF currently commands significant market share and fee revenue. As Franklin Templeton introduces dividend-driven Bitcoin exposure and Morgan Stanley deepens its fee war, BlackRock may face pressure to adjust fees or enhance product features to defend its leadership in crypto ETFs.
