Franklin Templeton Submits XRP ETF to Regulator, Ready to Open Access to New Investments

Bittime - Franklin Templeton officially submitted an XRP-based Exchange-Traded Fund (ETF) proposal to the United States Securities and Exchange Commission (SEC) on March 11, 2025. Read the review here.

This step is part of the company's strategy to expand digital asset exposure for institutional investors. If approved, this ETF would allow investors to gain exposure to the price of XRP without needing to purchase and hold the crypto asset directly.

XRP ETF Franklin Templeton Structure

This ETF will operate under Franklin XRP Trust. The technology is based in Delaware which was founded on February 28, 2025. 

Franklin Templeton voted Coinbase Custody Trust Company, LLC as the main store of XRP assets. Meanwhile, cash management will be carried out by State Street Bank and Trust Company.

This ETF is designed to track the price of XRP with the asset price calculated based on an index CF Benchmarks, which collects data from various major crypto exchanges such as Coinbase, Bitstamp, Kraken, and LMAX Digital. 

Read also: XRP ETF: Latest Developments You Should Know About

These ETF shares will later be traded at Cboe BZX Exchange, allowing investors to participate in the XRP market without technical barriers such as creating a crypto wallet or digital asset storage security.

XRP ETF Benefits and Risks

One of the main advantages of this ETF is easy access for institutional and retail investors to get involved in the XRP ecosystem without needing to handle crypto directly. 

With the system authorized participants, registered brokers can create or redeem large amounts of ETF shares using XRP or cash, providing more flexibility for investors.

However, these ETFs also carry some risks, especially in terms of regulation and market volatility. The SEC is still considering various factors before approving an XRP ETF, despite previous court decisions stating that XRP is not a security when traded on exchanges. 

Additionally, sudden regulatory changes or instability in the governance mechanism of the XRP blockchain may affect the ETF's performance.

Read also: XRP ETF and Its Impact on Ripple Coin Price

Competition with Other Crypto ETFs

Franklin Templeton is not the only company trying to launch an XRP-based ETF. Grayscale and 21Shares has also put forward a similar proposal, reflecting the growing institutional interest in this digital asset. 

In addition, Franklin Templeton itself has previously launched an ETF based on Bitcoin (BTC) dan Ethereum (ETH) as well as submitting a proposal for a Solana (SOL) ETF.

If this XRP ETF is approved, it could be a major step in the adoption of XRP as a mainstream investment asset, expanding the cryptocurrency's reach among traditional investors.

FAQ

1. What is an XRP ETF? 

An XRP ETF is an Exchange-Traded Fund designed to track the price of XRP, allowing investors to gain exposure to XRP without having to buy and hold it directly.

2. Why did Franklin Templeton propose an XRP ETF? 

Franklin Templeton saw a huge opportunity in crypto-based investments and wanted to provide an easier option for institutional investors to invest in XRP.

3. What are the advantages of an XRP ETF for investors? 

Investors can invest in XRP without needing to deal with storage security or complicated transaction processes. The ETF also allows XRP trading through traditional brokers.

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Reference 

FX Street, Franklin Templeton Files Application for XRP ETF as SEC Delays Canary and Grayscale Filing Decisions, accessed March 12, 2025.

Bitcoin.comNews, Franklin Templeton Seeks SEC Approval for Spot XRP ETF in Latest Crypto Push, accessed March 12, 2025.

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