XRP News Today: Franklin XRP ETF: $1.69T Giant's Stamp on Maturing Crypto Market

Franklin Templeton has launched the Franklin XRP ETF (XRPZ) on NYSE Arca, marking a significant milestone in institutional adoption of digital assets. The fund, structured as a grantor trust holding XRP, offers investors regulated exposure to the third-largest cryptocurrency by market capitalization. XRPZ seeks to reflect the performance of XRP using the CME CF XRP-Dollar Reference Rate (New York Variant), with Coinbase Custody Trust Company serving as custodian and BNY Mellon handling administrative duties according to the company's announcement.

The ETF's debut comes amid a broader surge in institutional interest in XRP, fueled by regulatory clarity following the U.S. Securities and Exchange Commission's (SEC) August 2025 settlement with Ripple. The agency had sued Ripple in 2020, alleging XRP was sold as an unregistered security. The resolution, which required a $125 million payment, paved the way for XRP-based investment products. Franklin Templeton's entry into the XRP ETF market aligns with a growing trend of traditional financial firms offering regulated access to crypto assets.

XRPZ joins a competitive landscape of XRP ETFs, including offerings from Bitwise, Grayscale, and Canary Capital. Bitwise's XRP ETF, which began trading on November 20, saw $118 million in inflows within days of its launch. Grayscale also announced its XRP ETF (GXRP) and Dogecoin ETF (GDOG) would debut on November 24, further expanding the altcoin ETF ecosystem. Franklin Templeton's XRPZ is structured to provide daily transparency, custodial security, and liquidity, addressing operational complexities associated with direct XRP holdings.

Market dynamics for XRP have shown mixed signals. While the token has rebounded to $2.11 in the wake of ETF launches, blockchain data reveals whale activity-large holders sold nearly 200 million XRP in two days post-launch, raising concerns about short-term volatility. Analysts note that ETF inflows may not immediately lift spot prices due to arbitrage lags and institutional hedging strategies. However, the ETFs are seen as catalysts for long-term liquidity, with XRP's utility in cross-border payments and tokenization positioning it as a foundational asset in digital finance.

Franklin Templeton's expansion into XRP follows its existing lineup of crypto ETFs, including those for Bitcoin (EZBC), Ethereum (EZET), and a diversified crypto index (EZPZ). The firm's head of digital assets, Roger Bayston, emphasized XRP's role in aligning stakeholder interests within decentralized networks and its potential as a "building block" in diversified portfolios. With $1.69 trillion in assets under management, Franklin Templeton's foray into XRP underscores the maturation of the digital asset market and the increasing convergence of traditional and crypto finance.