Franklin Templeton Files for a Spot XRP ETF, Positioning the Firm Among Growing List of Financial Institutions Seeking Regulatory Approval

This move positions the firm among a growing list of financial institutions seeking regulatory approval to launch a spot XRP exchange-traded fund (ETF). By John P.

Franklin Templeton (BEN) is venturing into the world of cryptocurrencies with the planned launch of an exchange-traded fund (ETF) to provide investors with direct exposure to (XRP) in a new format.

The investment firm disclosed its intentions through an S-1 filing with the Securities and Exchange Commission (SEC) on Wednesday. The proposed Franklin XRP Trust aims to offer an efficient way for investors to gain exposure to Ripple’s digital asset without needing to hold it personally or personally engage in cryptocurrency trading.

The ETF, which will be listed on the Cboe BZX Exchange, will track the price of XRP, ensuring that investors benefit or bear the performance of the digital asset. Coinbase Custody will serve as the fund’s custodian.

“The Fund seeks to reflect generally the performance of the price of XRP before payment of the Fund’s expenses,” the filing explains.

This move positions the firm among a growing list of financial institutions seeking regulatory approval to launch a spot XRP ETF.

Franklin Templeton joins Grayscale (CRYPTO:GRSCL), WisdomTree (NYSE:WTR), Bitwise, 21Shares, and Canary Capital, all of whom are awaiting regulatory decisions on their own XRP ETF proposals.

SEC Delays Decision on Grayscale and Canary XRP ETFs

In a parallel development, the SEC announced that it would postpone its decision on the Grayscale and Canary Capital XRP ETF applications.

According to a statement by SEC Assistant Secretary Sherry Haywood, the regulator requires additional time to review the filings and assess the implications of approving an XRP-based investment product.

“The Commission finds it appropriate to designate a longer period within which to take action… so that it has sufficient time to consider the proposed rule change and the issues raised therein,” Haywood noted.

The revised deadline for a decision on these filings has been set for May 21, 2025. Given the SEC’s history of deferring crypto-related ETF approvals, market participants remain cautious about predicting when a final ruling might arrive.

The next stage in the SEC’s review process will involve an assessment of the feedback it receives from the public on these ETF proposals.

The SEC also announced that it would delay its rulings on several other ETF applications, including those from Shapeshift (NYSE:SHFT), Trustlink (OTCMKTS:TRLI), and ETF Factory.

These institutions are seeking approval to launch ETFs that track the performance of baskets of cryptocurrencies, offering investors diversified ways to invest in the digital asset market.

The new deadline for the SEC to decide on these remaining applications has been set for April 4, 2025.

Market Reacts as XRP Price Shows Gains

Following the ETF filing, the XRP price (XRP USD) saw a modest surge, trading at $2.17, up 3.51% in the last 24 hours. This follows a broader cryptocurrency market recovery, with investors showing renewed interest in Ripple cryptocurrency (CRYPTO:XRP) as institutional adoption grows.

Analysts remain optimistic about XRP price predictions, citing increased institutional demand and the potential approval of spot XRP ETFs as key catalysts. The entry of a major player like Franklin Templeton could further bolster market confidence in Ripple’s XRP ledger as a legitimate investment asset.

As the regulatory landscape evolves and institutional interest in cryptocurrencies intensifies, the coming months could witness significant developments in the XRP market.