XRP News Today: XRP ETFs Debut Amid SEC's Unresolved Security Debate

Franklin Templeton's XRP ETF (XRPZ) launched on NYSE Arca on November 24, 2025, marking a pivotal moment for institutional access to XRP, the digital asset underpinning the XRP Ledger (XRPL). The fund, structured as a grantor trust, holds XRP and tracks the CME CF XRP-Dollar Reference Rate (New York Variant), offering investors regulated exposure to the token without direct custody complexities. With an annual fee of 0.19%-waived for the first $5 billion in assets until May 2026-XRPZ joins Franklin's existing crypto ETF lineup, which includes products tied to Bitcoin (EZBC), Ethereum (EZET), and a diversified crypto index (EZPZ)according to Seeking Alpha.

The ETF's launch follows a landmark regulatory shift. In August 2025, the U.S. Securities and Exchange Commission (SEC) settled its longstanding lawsuit with Ripple, allowing clarity for XRP-based products. This development, coupled with growing institutional demand for digital assets, has spurred a wave of XRP ETF approvals, including offerings from Bitwise, Grayscale, and Canary Capitalaccording to CoinDesk. Franklin's entry into this space underscores the token's evolving role as a "foundational building block" in global payments infrastructure, according to Roger Bayston, head of digital assets at Franklin Templeton.

XRP's utility as a cross-border settlement tool has driven its appeal. The XRPL processes thousands of transactions per second with minimal energy use, enabling real-time, low-cost transfers for financial institutions. Analysts argue that XRP's low correlation to traditional assets and its role in tokenization make it a compelling addition to diversified portfolios. However, the token remains volatile, trading near $2.08 as of November 26 after an initial post-launch rebound.

Market reactions to the ETFs have been mixed. While XRPZ and Grayscale's GXRP ETF attracted early inflows, the broader crypto market faced $1.94 billion in outflows, with Bitcoin ETFs seeing significant redemptionsaccording to Yahoo Finance. Analyst Chad Steingraber predicted XRPZ's first-day trading volume could reach $30 million, driven by institutional adoption and retail investor interest. Meanwhile, some experts remain cautious, noting that XRP's price could face downward pressure if ETF inflows fail to offset broader market weakness.

Regulatory uncertainties persist. XRP's status as a security or commodity remains unresolved, with the SEC's evolving stance on crypto ETFs adding complexity. Franklin's XRPZ, like other XRP funds, is not registered under the Investment Company Act of 1940, exposing investors to higher risks, including market volatility and operational challenges.

The ETF's custodial structure, managed by Coinbase Custody and BNY Mellon, aims to mitigate some of these risks by providing daily transparency and institutional-grade safeguards. However, the fund's passive approach-lacking active management or hedging-means its value will directly reflect XRP's price movements.

As XRP ETFs gain traction, they could reshape the token's market dynamics. By offering a regulated, liquid vehicle for traditional investors, these funds may boost XRP's institutional adoption and liquidity. Yet, their long-term success will depend on sustained regulatory clarity and the token's ability to maintain its role as a bridge asset in global finance.