Investment company Franklin Templeton was the latest to file for the launch of a new ETF based on the XRP token.

Franklin Templeton, one of the world's leading investment managers, aims to expand the available ETFs based on digital assets with an XRP-based fund.

Investment company Franklin Templeton has filed for the launch of a new ETF based on the XRP token. The filing follows a series of filings from other companies, including Bitwise and 21Shares.

The new fund, which will be listed on the CBOE BZX Exchange, will seek to provide investors with an efficient and cost-effective way to gain exposure to the price movements of XRP. The fund’s shares will be designed to replace an investment in XRP through crypto exchanges, including the need to self-custody XRP in a wallet.

The Shares aim to reflect the intrinsic value of XRP, while providing an alternative way of achieving exposure. Franklin Templeton targets those that are more comfortable with the stock market than crypto holdings.

The fund’s price will be derived from the CME CF XRP-Dollar Reference Rate, and the shares will be created and redeemed in predetermined batches, only by Authorized Participants.

The fund’s filing follows a recent filing from Canary Capital, which is also seeking to launch an XRP ETF. Together, the filings highlight the growing interest in providing investors with new and innovative ways to invest in digital assets.

The filings also come at a time when the SEC is facing pressure to approve more crypto ETFs. Earlier this year, the SEC delayed the approval of several Bitcoin ETFs, citing concerns about market manipulation and fraud. However, the agency has since approved several other types of ETFs, including ones that track the performance of the cannabis industry and the metaverse.

If the SEC does approve more crypto ETFs, it could open up the door for a new wave of institutional money to flow into the cryptocurrency market. This could lead to a significant increase in the price of Bitcoin and other cryptocurrencies.

The new fund will be included in the Franklin Templeton’s toolset in connecting crypto and traditional finance. The company’s filing with the SEC on Monday also stated that the ETF is expected to be an emerging growth company under the JOBS Act.

The fund’s purpose will be to give exposure to XRP as an underlying asset. The ETF’s asset mix will include both XRP tokens and cash in a predetermined ratio. Franklin Templeton will serve as the fund’s Sponsor, but will not be liable for extraordinary expenses, such as lawsuits or other unusual claims. The investment company will take over some recurring fees and expenses related to the fund.

The fund is currently in the early stages of the approval process. The SEC will need to review the application and provide its feedback. If the SEC approves the fund, it could begin trading within the next few months.

The S-1 filing advances the process to the next stage, which is the SEC’s response and comments, but it does not instantly result in the fund receiving approval.

SEC remains cautious about new ETF

The US SEC took its time to approve BTC and ETH funds, with multiple delays. Multiple other assets have been proposed and are in various stages of approval. XRP, despite the detailed filings, remains a distant possibility.

The SEC may take months of deliberation and comments before even one of the funds starts trading. XRP currently derives most of its liquidity from direct trading and demand. The token has seen some mainstream adoption due to earlier partnerships with Ripple and early XRP airdrops.

The SEC has repeatedly delayed alternative exchange-traded funds (ETFs) based on altcoins, such as SOL, LTC, DOGE, and others. In spite of this, the regulator examines every submission, including the most recent ETF built on the Hedera Hashgraph (HBAR).

ETF are generally considered a way to bring Wall Street into crypto investment. However, the launch of ETF has not been as favorable for Ethereum (ETH). XRP is also held in multiple legacy wallets and has been distributed widely. The only scarcity comes from XRP burns for operations, although the token is not necessary to Ripple’s decentralized ledger technology.