Franklin Templeton Files for XRP ETF Amid SEC Delays

Franklin Templeton, a well-known asset management firm, has submitted a Form S-1 with the U.S. Securities and Exchange Commission (SEC) to introduce the Franklin XRP ETF. This development comes amidst a backdrop of delayed decisions by the SEC on various cryptocurrency ETF applications, including those for XRP, Solana, Litecoin, and others. The proposed ETF is designed to track the spot price of XRP, the native token of the decentralized blockchain XRPLedger, which is utilized by Ripple Labs to facilitate transactions and enable borderless value transfers for financial institutions.

The filing specifies that the Franklin XRP ETF will be listed on the Cboe BZX Exchange and will use Coinbase Custody to safeguard its XRP holdings. The fund aims to mirror the performance of XRP's price before accounting for the fund's expenses. With this submission, Franklin Templeton joins a growing list of asset managers, including Bitwise, 21Shares, Grayscale, WisdomTree, Canary Capital, and CoinShares, who are awaiting regulatory approval for their XRP ETF applications. The SEC has a 240-day window to either approve or deny the product after acknowledging a filing.

Franklin Templeton's filing for the XRP ETF is part of a broader initiative to expand its cryptocurrency offerings. Earlier in January, the firm also filed for an ETF that will track the spot price of Solana. This move underscores the increasing interest and investment in the cryptocurrency market by traditional financial institutions. The SEC's delay in decisions on multiple crypto spot ETFs, including those for XRP, Solana, Litecoin, and others, has created a sense of anticipation and uncertainty in the market. The regulatory body has designated May 21, 2025, as the date by which it will either approve or disapprove the proposed rule change for the Canary XRP ETF and the Grayscale XRP ETF.

The filing of the Franklin XRP ETF comes at a time when the cryptocurrency market is attempting a recovery. XRP, along with other cryptocurrencies, has seen a surge in value, reflecting the growing interest and investment in the digital asset space. The proposed ETF, if approved, would provide investors with a regulated and accessible way to gain exposure to XRP, further driving its adoption and usage. The move by Franklin Templeton to launch an XRP ETF is a significant development in the cryptocurrency market, highlighting the growing acceptance and integration of digital assets into traditional financial systems.