- Franklin Templeton files XRP spot ETF with SEC, aiming to track XRP’s price via Cboe BZX Exchange with $1.5T AUM backing.
- ETF avoids leverage, holds physical XRP, and uses Coinbase Custody’s cold storage for asset security amid regulatory scrutiny.
Franklin Templeton, a global investment management company overseeing $1.5 trillion in assets, has filed a proposal with the U.S. Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF). The fund, designed to track the price performance of XRP—the fourth-largest cryptocurrency by market value—is slated to list on the Cboe BZX Exchange.
“The Shares are intended to offer a convenient means of making an investment similar to an investment in XRP relative to acquiring, holding and trading XRP directly on a peer-to-peer or other basis or via a digital asset platform.”
The fund’s structure avoids derivatives or leverage, focusing solely on replicating XRP’s price movements. According to the S-1 filing, shares will reflect the cryptocurrency’s value directly, bypassing the need for investors to interact with digital asset platforms or peer-to-peer networks. Coinbase Custody, a regulated crypto storage provider, will safeguard the ETF’s XRP holdings in cold wallets.
“The Sponsor does not sell XRP at times when its price is high or acquire XRP at low prices in the expectation of future price increases. The Fund will not utilize leverage, derivatives or similar instruments or transactions in seeking to meet its investment objective.”
XRP’s spot price rose 2.05% over the past day, trading at $2.23. Its market cap nears $120 billion, trailing Bitcoin, Ethereum, and BNB. The filing highlights institutional interest in altcoin-based investment vehicles, though XRP’s regulatory status remains unresolved. Ripple Labs, the company behind XRP, continues to litigate with the SEC over whether XRP qualifies as a security.
The SEC has not yet acknowledged the application
Franklin Templeton’s proposal does not address this legal uncertainty. If approved, the ETF could expand retail and institutional access to XRP while challenging regulators to clarify altcoin frameworks. ETHNews analysts note that such products test the SEC’s openness to non-Bitcoin crypto assets, especially amid ongoing litigation.
Approval timelines depend on market conditions and policy shifts toward digital assets. The move aligns with broader efforts to bridge traditional finance and crypto markets, offering simplified exposure to blockchain-based assets.
As of today, XRP is trading at $2.2329, reflecting a 0.30% decline in the past 24 hours. Over the past week, XRP has dropped by 10.69%, and in the last month, it has decreased by 7.89%. Despite the recent correction, XRP remains a strong performer over the last six months with a 289.82% gain, and it is still up 224.49% year-over-year.
XRP reached its highest price of $3.40 on January 16, 2025, before entering its current correction phase. Technical indicators currently suggest a neutral trend, with mixed signals from moving averages and oscillators.
The key support level to watch is around $2.10-$2.00, while resistance is at $2.40-$2.50. If buying pressure increases, XRP could attempt another rally towards $2.70-$3.00.
