- Franklin Templeton, a global asset manager with $1.4 trillion in assets, has filed an S-1 form with the SEC for an XRP ETF to trade on the CBOE BZX Exchange, joining Bitwise, 21Shares, Canary Capital, Grayscale, and WisdomTree in targeting exposure to XRP, the fourth largest crypto asset by market cap.
- The fund, sponsored by Franklin Holdings with Coinbase Custody as custodian and CSC Delaware Trust Company as trustee, will use the CME CF XRP-Dollar Reference Rate for net asset value and offer shares continuously to authorized participants.
- This filing, following the February Franklin XRP Trust registration in Delaware, enters a 240-day SEC review process alongside other XRP ETF applications, amid ongoing regulatory scrutiny of XRP due to the SEC’s legal battle with Ripple Labs.
Franklin Templeton’s filing of an S-1 registration form with the SEC for an XRP ETF underscores the accelerating momentum among asset managers to tap into the growing demand for cryptocurrency investment vehicles, positioning XRP – the fourth largest crypto asset by market capitalization – as a focal point in this evolving landscape. This move follows the company’s February registration of the Franklin XRP Trust in Delaware, aligning it with a competitive cohort that includes Bitwise, 21Shares, Canary Capital, Grayscale, and WisdomTree, all of whom are pursuing similar XRP ETF offerings. The proposed fund, set to trade on the CBOE BZX Exchange with a yet-to-be-determined ticker symbol, aims to offer investors direct exposure to XRP’s price movements, leveraging the CME CF XRP-Dollar Reference Rate to calculate its net asset value, a mechanism designed to ensure pricing accuracy and transparency.
The operational framework of Franklin Templeton’s ETF reflects a robust structure tailored to meet institutional standards, with Coinbase Custody designated as the custodian of the fund’s XRP holdings and Coinbase itself acting as the prime broker, while CSC Delaware Trust Company serves as trustee. Shares will be offered continuously at net asset value, restricted to authorized participants for creation or redemption of units, a setup that mirrors the mechanics of established spot crypto ETFs like those for Bitcoin (BTC) and Ethereum (ETH). Franklin Holdings, as the fund’s sponsor, will cover most ordinary operating expenses in exchange for a sponsor’s fee, a strategic move to enhance the fund’s appeal to investors. Structured as an emerging growth company under the JOBS Act, the trust benefits from certain regulatory flexibilities, though it still awaits SEC approval, a process that could span up to 240 days based on the timeline initiated by Grayscale’s February 14 filing.
The SEC’s acknowledgment of multiple XRP ETF applications – including those from WisdomTree, Canary Capital, and CoinShares – marks a significant shift, as it engages with XRP-focused products for the first time amid its ongoing legal tussle with Ripple Labs over the asset’s classification. With these filings now in the public commentary phase, Franklin Templeton’s entry amplifies the stakes, reflecting a broader industry bet on a more crypto-friendly regulatory stance under the current administration, though the outcome remains contingent on the SEC’s final verdict.
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