Investment Giant Enters the Crypto Arena
Franklin Templeton, a leading name in the investment world, is making headlines by entering the competitive landscape of cryptocurrency exchange-traded funds (ETFs). The firm has submitted a preliminary application to the Securities and Exchange Commission (SEC) for a new product: the Franklin XRP ETF.
Details of the Franklin XRP ETF Application
On Tuesday, Franklin Templeton revealed its plans for the Franklin XRP ETF, designed to track the spot price of XRP, exclusive of any associated fees. This ETF will utilize Coinbase Custody to securely hold the underlying assets.
Trading Dynamics on the Cboe BZX Exchange
Shares of the Franklin XRP ETF are set to be traded on the Cboe BZX Exchange. The trading mechanism involves authorized participants who will create or redeem shares in blocks using cash, which will then be converted into XRP through a third-party service. It is important to note that shareholders of this ETF will not receive any benefits from XRP Ledger forks or airdrops, a typical feature often enjoyed in cryptocurrency holdings.
Understanding the SEC’s Review Process
As this filing is still in its preliminary stages, the SEC has a timeframe of up to 240 days to review the application, which means a decision could be made as late as the end of 2025. Franklin Templeton’s initiative places it alongside other financial entities like Bitwise and 21Shares, all vying for a piece of the XRP ETF market amid a broader trend towards crypto-friendly regulations.
Market Response and XRP’s Performance
In the last 24 hours, XRP has seen a notable increase of 4.2%, reflecting a wider recovery trend in the cryptocurrency market. This uptick highlights the growing interest and investment potential in digital assets, particularly as established financial firms like Franklin Templeton venture into this space.
The growing competition in the XRP ETF sector signifies a shift in the financial landscape, as traditional investment firms recognize the importance of cryptocurrencies in modern portfolios.
