- Franklin Templeton has filed for a Spot XRP ETF, joining 17 proposals awaiting SEC approval.
- The ETF aims to offer XRP exposure without direct crypto holdings or self-custody risks.
- SEC has delayed decisions on Canary and Grayscale XRP ETFs, setting a deadline for May 21, 2025.
Franklin Templeton has filed for a Spot XRP Exchange-Traded Fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The investment firm, which manages over $1.4 trillion in assets, submitted an S-1 registration statement on March 11, 2025. This move adds to the growing number of XRP ETF proposals, bringing the total to 17.
The proposed fund would allow investors to hold shares instead of directly purchasing XRP from exchanges. The ETF will derive its price from the CME CF XRP-Dollar Reference Rate.
If approved, the ETF will trade on the CBOE BZX Exchange and Coinbase Custody would hold the underlying XRP tokens. Franklin Templeton registered the ETF Trust in Delaware on February 28, 2025. The firm also confirmed the Trust will operate as an emerging growth company under the JOBS Act.
Franklin Templeton joins other major firms in seeking SEC approval for an XRP ETF. Previous applicants include Bitwise, 21Shares, Grayscale, WisdomTree, Canary Capital, and CoinShares. Despite the SEC’s cautious approach, the Institutional interest in XRP keeps growing.
The proposed ETF will include XRP and cash in a fixed ratio. Franklin Templeton will act as the sponsor and will cover recurring fees. However, the firm will not be responsible for extraordinary expenses like lawsuits. Only authorized participants will be allowed to create and redeem fund shares in predetermined batches.
Related: Franklin Templeton Predicts Global BTC Reserves to Rise in 2025
The SEC has not approved any Spot XRP ETF applications. The agency continues to review various filings, delaying its decision on the Canary and Grayscale XRP ETF proposals. The SEC stated it needed more time to evaluate the applications. A final decision is now expected by May 21, 2025.
The filing comes amid cautious market sentiment. Investors view altcoins as high-risk assets, but XRP supporters highlight its utility in global finance. Franklin Templeton aims to bridge traditional finance with the crypto sector by offering a regulated investment vehicle.
As the SEC continues its review, market participants are watching closely. A decision on Franklin Templeton’s filing remains uncertain. Approval could pave the way for increased institutional adoption of XRP. Meanwhile, investors await further updates from regulators.
XRP remains the fourth-largest cryptocurrency by market capitalization. At press time, XRP was trading at $2.16, up 3.00% in the last 24 hours. Its market cap stands at $125.77 billion, while daily trading volume has dropped 29.13% to $6.68 billion.
