SEC filing marks a major step in institutional crypto investment.
Franklin Templeton Seeks SEC Approval for XRP ETF
Franklin Templeton has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) to launch the Franklin XRP ETF. The proposed exchange-traded fund (ETF) would track the price of XRP, allowing investors exposure without directly holding the cryptocurrency.
Structure and Key Players in the ETF
The Franklin XRP Trust, formed in February 2025, will hold XRP tokens through Coinbase Custody, while State Street Bank will manage cash assets. Shares will trade on the Cboe BZX Exchange, with net asset value (NAV) calculated using the CF Benchmarks Index, which aggregates data from major exchanges like Coinbase, Kraken, and Bitstamp.
Institutional Demand Driving XRP ETF Expansion
Franklin Templeton’s filing comes amid increasing demand for crypto ETFs, with competitors like Grayscale and 21Shares also pursuing XRP-based funds. The move follows a landmark ruling that XRP is not classified as a security when traded on exchanges, clearing regulatory uncertainty surrounding the asset.
Regulatory Risks and Market Implications
Despite progress, potential risks remain, including regulatory shifts, market volatility, and blockchain governance challenges. Under the Trump administration, however, Wall Street firms are pushing for looser regulations, increasing the likelihood of crypto ETF approvals.
Potential Impact on XRP Adoption
If approved, the Franklin XRP ETF could broaden institutional and retail investor access to XRP through traditional brokerage platforms. The SEC’s decision on the filing could serve as a signal of its evolving stance on crypto-based financial products in the U.S.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
