- Franklin Templeton, a $1.5 trillion asset manager, has filed for an XRP ETF, with shares set to be listed on the Cboe BZX exchange.
- Ripple CEO Brad Garlinghouse has positively reacted to the news, while the SEC’s ongoing lawsuit against Ripple adds regulatory uncertainty to the approval process.
The race to launch an XRP ETF in the United States is intensifying. Franklin Templeton, an asset manager giant overseeing over $1.58 trillion in assets, has officially joined the fray.
The giant asset manager recently submitted an S-1 registration to the U.S. Securities and Exchange Commission. This event comes on the heels of an earlier registration of an XRP Trust in Delaware.
It is worth mentioning that the earlier registered XRP Trust structured as a Delaware Statutory Trust is designed to track XRP’s price performance, and therefore providing investors with indirect exposure to the digital asset.
As for the filing, the trust has chosen Coinbase Custody as the custodian for its XRP holdings, while CSC Delaware Trust Company will serve as its sole trustee.
Interestingly, an undisclosed custodian will be responsible for managing the fund’s cash holdings, acting as the transfer agent and administrator. Franklin Templeton itself will serve as the sponsor and marketing agent for the XRP Trust.
With Franklin Templeton now joining the race, shares of the Franklin CRP Trust are slatred to be listed and traded on the cboe BZX exchnage. This is similar to filing s from other asset managers including WisdomTree, Canary Capital, and 21Shares, who have also selected Cboe BZX as their preferred trading platform for XRP ETF shares.
Ripple CEO Reacts
The news of Franklin Templeton’s filing has garnered attention from key crypto figures and, most notably, Ripple CEO Brad Garlinghouse. His reaction to the development was subtle yet telling. This was demonstrated by a simple eye emoji on the X platform, which was enough to stir excitement within the XRP community.
Additionally, Nate Geraci, President of The ETF Store, weighed in on the announcement, emphasizing Franklin Templeton’s stature as a “big name” in the asset management industry.
With the S-1 application already in place, the next step involves Cboe filing a 19b-4 form with the U.S regulators. Following this, the SEC will enter a review process with a maximum window of 240 days to approve or deny the application.
Industry analysts believe the SEC will likely acknowledge the filing, as it has done with similar applications like Grayscale’s. However, the ongoing SEC vs. Ripple lawsuit casts a shadow over the XRP ETF process.
The case, which has remained in court for almost five years now, Ripple CEO Garlinghouse reportedly negotiating to overturn a trial court ruling that deemed Ripple’s institutional XRP sales as investment contracts.
This ruling led to a $125 million fine and restrictions on Ripple’s future XRP sales to institutional investors.
Overturning this decision could remove a key regulatory obstacle and pave the way for clearer guidelines on XRP ETFs.
Meanwhile, XRP is swapping hands with $2.19 after a 2.67% surge in the last 24 hours.
