Franklin Templeton, a global asset management firm overseeing $1.6 trillion in assets, filed an S-1 registration form with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that will track the spot price of XRP, the cryptocurrency created by Ripple Labs. This filing marks a significant step in the firm’s expansion into digital asset investments beyond Bitcoin and Ethereum, following its earlier filings for spot Bitcoin, Ethereum, and Solana ETFs.
The proposed Franklin XRP ETF aims to provide investors—both institutional and retail—with exposure to XRP without the need to directly hold the cryptocurrency, thereby offering a regulated investment vehicle. The ETF is planned to trade on the Cboe BZX Exchange, with Coinbase Custody serving as the custodian for the fund’s XRP holdings and Coinbase acting as the prime broker. CSC Delaware Trust Company will serve as the trustee. The fund will use the CME CF XRP-Dollar Reference Rate to determine its net asset value (NAV), with shares offered continuously at NAV and only authorized participants able to create or redeem creation units.
Franklin Holdings, a subsidiary of Franklin Templeton, will sponsor the fund and cover most ordinary operating expenses in exchange for a sponsor’s fee. The trust is structured as an emerging growth company under the JOBS Act, which provides certain regulatory exemptions. This filing is part of a broader wave of interest in altcoin ETFs, with Franklin Templeton joining other asset managers such as Bitwise, 21Shares, Canary Capital, Grayscale, WisdomTree, CoinShares, ProShares, and Volatility Shares in seeking SEC approval for XRP ETFs.
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There are 17 XRP ETF proposals in various stages of review. The surge in filings is attributed to expectations of a more crypto-friendly regulatory environment under the Trump administration, which has expressed intentions to include XRP in a strategic cryptocurrency reserve. Market sentiment, as reflected in Polymarket data, shows a 75% probability of SEC approval for an XRP ETF in 2025, up from earlier estimates, signaling growing optimism.
However, the SEC has up to 240 days to approve or deny Franklin Templeton’s application, meaning a final decision may not come until late 2025. The SEC has already delayed decisions on other XRP ETF filings, such as those from Grayscale and Canary Capital, with deadlines extended to May 21, 2025, and potentially further into October. The regulatory process remains complex, partly due to ongoing scrutiny of XRP’s status following the SEC’s legal battle with Ripple Labs, which has raised questions about whether XRP should be classified as a security.
Despite these challenges, Franklin Templeton’s entry into the XRP ETF race is seen as a significant development, potentially driving institutional adoption and liquidity for XRP, which currently holds a market capitalization of approximately $124 billion, making it the fourth-largest cryptocurrency. The filing has contributed to bullish sentiment for XRP, with its price rising 4.2% in the 24 hours following the announcement, outpacing Bitcoin and Ethereum’s gains during the same period.
Analysts, including those from JPMorgan, estimate that XRP ETFs could attract $4.3 billion to $8.4 billion in investments within their first year if approved, though this is more modest compared to the inflows seen for Bitcoin ETFs, which now manage nearly $100 billion. Franklin Templeton’s move underscores the growing institutional interest in altcoins and the potential for XRP to become a mainstream investment asset, contingent on regulatory approval and broader market dynamics.