XRP News Today: XRP ETF Surge Reflects Institutional Shift Toward Tangible Financial Infrastructure

Franklin Templeton, the $1.7 trillion asset manager, has positioned XRP as a "foundational" element of global financial infrastructure with the launch of its XRPZ exchange-traded fund (ETF) on NYSE Arca. The move, announced November 24, 2025, underscores growing institutional confidence in the cryptocurrency's utility for cross-border payments and settlement systems, aligning with Ripple's long-term vision. The ETF, which uses Coinbase Custody and BNY Mellon as administrators, drew $89.3 million in initial inflows, signaling robust demand from both institutional and retail investors.

The firm's endorsement of XRP reflects a strategic pivot toward digital assets with real-world applications. Roger Bayston, Franklin Templeton's Head of Digital Assets, emphasized XRP's role in decentralized networks, stating it serves as a "structural building block" for scalable settlement systems. David Mann, the firm's ETF product director, added that XRP's speed, low cost, and network design make it uniquely suited for modern financial infrastructure. These comments have amplified XRP's credibility in a market still grappling with regulatory uncertainties.

The XRPZ ETF joins a wave of spot XRP products from major players like Grayscale, Bitwise, and Canary Capital, which launched their offerings earlier this month. Grayscale's GXRP ETF, for instance, reported $67.36 million in inflows on its first day, while Bitwise's XRP ETF attracted $100 million. Collectively, XRP ETFs have drawn over $164 million in inflows since their debut, outpacing Bitcoin and Ethereum ETFs that faced net outflows during the same period. This surge reflects a shift in institutional focus from speculative assets to those with tangible use cases, such as XRP's role in facilitating near-instant, low-cost international transactions.

Regulatory clarity has been a critical catalyst. Ripple's $125 million settlement with the SEC in May 2025 resolved years of legal ambiguity, enabling firms like Franklin Templeton to offer regulated XRP exposure. The settlement, which avoided an admission of wrongdoing, has emboldened asset managers to enter the space. Franklin Templeton's XRPZ ETF, structured as a grantor trust, provides investors with daily transparency and institutional-grade custody, further reducing barriers to adoption.

Market reactions have been swift. XRP surged 8.5% in 24 hours following the ETF launches, trading at $2.27. Analysts attribute this rally to increased liquidity and the growing acceptance of blockchain-based settlement systems. The XRP Ledger (XRPL), which processes thousands of transactions per second with minimal energy use, is now being integrated by banks and fintechs for cross-currency transfers. Franklin Templeton's prospectus highlights XRPL's potential to replace traditional systems like SWIFT, a claim echoed by Ripple and supported by institutions exploring digital alternatives.

While optimism is palpable, risks remain. XRP's volatility and regulatory uncertainties in jurisdictions like China temper the bullish outlook. Additionally, the ETFs hold only XRP and cash, making them unsuitable as standalone investments. Nonetheless, Franklin Templeton's entry into the XRP space signals a maturing market. With BlackRock and other giants yet to file XRP ETF applications, the asset's institutional trajectory appears firmly on track according to industry analysis.