Franklin Templeton Officially Files for XRP ETF – A New Milestone for the Crypto Market
Overview
Major U.S. asset management firm Franklin Templeton has officially filed for an XRP ETF (Exchange-Traded Fund), marking a significant development in the cryptocurrency industry. The ETF, named “Franklin XRP Trust” will have Coinbase Custody Trust Company as its custodian for XRP holdings.
ETF analyst Nate Geraci, president of The ETF Store, commented on the filing, stating that “a major player managing over $1.5 trillion in assets has entered the XRP ETF race.”
Big name enters XRP ETF race…
$1.5+ trillion asset manager Franklin Templeton. pic.twitter.com/D9RBSE3ckm
— Nate Geraci (@NateGeraci) March 12, 2025
This application suggests that XRP-based financial products could soon become more accessible to institutional and retail investors, potentially creating a major turning point for the crypto market.
Details of the ETF
The Franklin XRP Trust is established as a Delaware statutory trust. The ETF aims to reflect the price movements of XRP, allowing investors to gain exposure to XRP’s performance without directly holding the cryptocurrency.
Key components of the ETF include:
- Custodian: Coinbase Custody Trust Company (responsible for securing XRP holdings)
- Sponsor: Franklin Holdings, LLC
- Marketing Agent: Franklin Distributors, LLC
- Administrator & Transfer Agent: To be announced
Additionally, the fund is not registered under the Investment Company Act of 1940 and is not regulated by the U.S. Securities and Exchange Commission (SEC) as an investment adviser. This means it operates under a different regulatory framework compared to traditional investment funds.
Impact on the Market
The filing of an XRP ETF could have significant implications for the broader cryptocurrency market in several key ways:
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Potential XRP Price Surge
- If approved, the ETF would make it easier for institutional investors to gain exposure to XRP, increasing demand.
- Similar to the price impact seen after Bitcoin (BTC) spot ETFs were approved in 2024, XRP could experience a significant boost.
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Influence on SEC’s Regulatory Decisions
- In 2023, XRP was declared “not a security” following a legal battle with the SEC. This ruling may influence the approval process for the ETF.
- The key question is whether XRP will be treated like Bitcoin and Ethereum, which have both seen ETF applications gaining traction.
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Effects on Other Altcoin ETFs
- Franklin Templeton’s entry into the XRP ETF market could accelerate applications for other altcoin ETFs.
- Ethereum (ETH) spot ETF applications are already under SEC review. If an XRP ETF gets approved, other major altcoins like Solana (SOL) and Polygon (MATIC) may follow.
Future Outlook
Franklin Templeton’s XRP ETF filing represents a major step forward for the cryptocurrency industry, but SEC approval remains a major hurdle.
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Likelihood of SEC Approval
- Given the approval of Bitcoin spot ETFs, the chances of an XRP ETF being approved have increased.
- However, the SEC’s concerns regarding altcoin ETFs, including liquidity and risk factors, will be crucial considerations.
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Expected Timeline
- The SEC typically reviews ETF applications within a 240-day window before making a final decision.
- A final decision on this application is expected by late 2025.
Conclusion
- Franklin Templeton has officially filed for an XRP ETF
- Coinbase Custody Trust Company will serve as the fund’s custodian
- SEC’s decision could have a major impact on the XRP market
- The ETF could drive institutional adoption of XRP
- Other altcoin ETFs may follow if XRP’s application is successful
This filing has the potential to increase liquidity in the XRP market and attract more institutional investors. The crypto industry is now closely watching how the SEC will respond to this significant development.
