Franklin Templeton Files for XRP ETF

Franklin Templeton has submitted an S-1 registration form with the SEC for an XRP ETF, following the February launch of the Franklin XRP Trust in Delaware.

The filing positions Franklin Templeton among several asset managers seeking an XRP ETF, such as Bitwise, 21Shares, Canary Capital, Grayscale, and WisdomTree.

The proposed fund, intended to trade on the CBOE BZX Exchange, aims to give investors exposure to XRP, now the fourth-largest cryptocurrency by market capitalization. The ETF’s ticker symbol remains to be determined.

Coinbase Custody will serve as the custodian for the fund’s XRP assets, with Coinbase acting as the prime broker. The CSC Delaware Trust Company will function as the trustee.

Shares will be continuously offered at net asset value, with only authorized participants allowed to create or redeem creation units. The fund will leverage the CME CF XRP-Dollar Reference Rate to ascertain its net asset value.

Franklin Holdings will sponsor the fund and cover most ordinary operating costs in exchange for a sponsor’s fee. The trust is structured as an emerging growth company according to the JOBS Act.

This filing is part of ongoing efforts to launch a spot crypto ETF, following previous approvals for Bitcoin and Ethereum ETFs. The SEC must review and approve the filing before trading can commence.

In recent weeks, SEC acknowledged several XRP ETF applications, starting with Grayscale’s submission on February 14, which initiated a 240-day review period.

This marks the first instance in which the SEC has responded to a request for an investment product that directly holds XRP, amid ongoing regulatory scrutiny due to the SEC’s legal battle with Ripple Labs concerning XRP’s classification as a security.

Other applications, including those from WisdomTree, Canary Capital, and CoinShares, have also been accepted for review and are now in the public commentary phase, part of the SEC’s review procedure.