In a noteworthy move for the cryptocurrency landscape, investment giant Franklin Templeton has filed to launch a Franklin XRP exchange-traded fund (ETF). This step places the company among a growing array of financial asset providers eager to make XRP accessible to the general public through regulated investment vehicles.
The filing, announced on Tuesday, aims to track the spot price of XRP, minus applicable fees, with assets stored through Coinbase Custody. This strategic partnership with Coinbase ensures a level of security and reliability, crucial for institutional investors looking to enter the cryptocurrency market.
Shares of the ETF are expected to trade on the Cboe BZX Exchange, where authorized participants will have the capability to create and redeem shares in blocks. This process involves using cash to acquire XRP through a third party. It is important to note, however, that shareholders will not have access to benefits deriving from XRP Ledger forks or airdrops, an aspect that may influence investor interest and participation.
As it stands, the ETF filing is still in its preliminary stages, giving the U.S. Securities and Exchange Commission (SEC) up to 240 days to review and respond. This timeline suggests a possible decision could be reached as late as 2025. Franklin Templeton’s move joins those of other firms, including Bitwise and 21Shares, who are also vying for a foothold in the burgeoning XRP ETF market, signaling a potential shift toward greater crypto acceptance in traditional financial frameworks.
In the wake of this announcement, XRP has seen a notable uptick, rising 4.2% in just the past 24 hours, which aligns with a broader market recovery trend. As interest builds around cryptocurrency investments, Franklin Templeton’s entry into the XRP ETF arena may very well mark the beginning of a new chapter in mainstream finance’s relationship with digital assets.
