- Franklin Templeton enters the XRP ETF market, increasing competition.
- Institutional demand for XRP ETFs grows amid a favorable regulatory environment.
- The SEC’s review of XRP ETF filings could impact market momentum.
Franklin Templeton has entered the race for a cryptocurrency exchange-traded fund (ETF) by filing for an XRP ETF. This latest move expands the firm’s crypto offerings, including spot Bitcoin (BTC) and Ethereum (ETH) ETFs. The filing with the U.S. Securities and Exchange Commission (SEC) signals growing institutional interest in altcoin ETFs, particularly XRP. Franklin Templeton’s move follows the increasing demand for these funds as institutional players bet on the future of digital assets.
Franklin Templeton Files for XRP ETF
On Tuesday, Franklin Templeton filed for the Franklin XRP ETF, designed to track the spot price of XRP minus fees. Coinbase Custody will hold the assets, and shares will trade on the Cboe BZX Exchange. Shares will be created and redeemed through cash converted into XRP via a third-party service. Notably, shareholders will not receive XRP Ledger forks or airdrops, meaning the ETF will strictly follow XRP’s spot price.
This application is in its preliminary stage, with the SEC having up to 240 days to review it. A final decision is not expected until late 2025, reflecting the SEC’s careful approach to regulating crypto ETFs. The SEC is reviewing similar filings from other major firms, including Bitwise, 21Shares, Canary Capital, and WisdomTree. This places Franklin Templeton in direct competition with these asset managers, who seek approval for XRP-focused ETFs.
Institutional Interest in XRP ETFs Grows
The filing for an XRP ETF comes at a time of increasing institutional interest in crypto assets. Since President Donald Trump’s return, the regulatory environment has appeared more favorable toward cryptocurrency investments. This shift has led to a surge in ETF filings as institutional players look to capitalize on the growing demand. According to Polymarket data, 75% of bettors now predict a positive outcome for approving an XRP ETF, reflecting rising optimism.
XRP’s price of $2.25 market performance mirrors this growing confidence. In the last 24 hours, XRP has increased by 5.96 %, outperforming both Bitcoin and Ethereum. This aligns with a broader market recovery, signaling the potential for future institutional interest in the cryptocurrency space.
SEC Review Process and Approval Timeline
While institutional interest is high, the SEC has not approved any XRP ETFs. Grayscale’s application is also under review, with the SEC’s decision expected by mid-October. Franklin Templeton must submit a 19b-4 filing to begin the regulatory review process. Once filed, the SEC will assess the application and make a decision in due time.
Franklin Templeton’s entry into the XRP ETF market underscores the growing institutional appetite for crypto ETFs. As the competition heats up, all eyes are on the SEC’s decision, with firms like Franklin Templeton positioning themselves for potential approval.
Disclaimer:Â This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
