Franklin Resources' New XRP ETF: Evaluating Valuation Amidst Share Price Momentum and Growth Prospects

Franklin Resources has launched an XRP ETF, tracking the price movements of XRP, a cryptocurrency for efficient cross-border payments. The stock's share price has gained 12.2% year-to-date and 21.7% over five years. The new ETF adds another option for investors interested in the digital asset space. The company's expansion in non-U.S. and emerging markets positions it to benefit from rising global wealth and institutional capital allocation. However, ongoing fee compression and persistent outflows at Western Asset Management could present challenges to revenue growth and margin expansion.