The competition for cryptocurrency-based exchange-traded funds (ETFs) is heating up, and Franklin Templeton is the latest institutional giant to throw its hat into the ring. According to latest news sources, the firm has officially filed a preliminary application for a Franklin XRP ETF with the U.S. Securities and Exchange Commission (SEC), aiming to provide investors with exposure to XRP without requiring direct ownership.
This move positions Franklin Templeton alongside other major players such as Bitwise and 21Shares, all racing to bring an XRP ETF to market. However, regulatory approval remains a hurdle, with the SEC having up to 240 days—potentially until late 2025—to approve or deny the application. If approved, the ETF could mark a significant milestone in mainstream crypto adoption.
Franklin Templeton’s XRP ETF Filing: Key Details
Franklin Templeton’s proposed XRP ETF seeks to track the spot price of XRP while deducting minimal fees. The ETF shares will be listed and traded on the Cboe BZX Exchange, a platform already familiar with cryptocurrency-based ETFs.
How Will the ETF Work?
- Custody: XRP assets will be securely held through Coinbase Custody, a trusted institutional-grade storage solution.
- Share Trading: Investors will be able to buy and sell ETF shares on the Cboe BZX Exchange, offering a regulated avenue for XRP investment.
- Creation & Redemption: Authorized participants will create and redeem ETF shares in blocks, utilizing cash that will be converted into XRP via a third-party service provider.
- No Fork or Airdrop Benefits: Shareholders will not receive XRP Ledger forks or airdrops, ensuring a streamlined investment structure.
Franklin Templeton’s entry into the XRP ETF race signals growing confidence among traditional financial institutions in the potential of XRP and the broader cryptocurrency market.
SEC Approval Timeline and Market Implications
While Franklin Templeton’s application has sparked optimism, regulatory approval remains uncertain. The SEC has a maximum review period of 240 days, meaning a final decision could come by late 2025.
This timeline aligns with increasing speculation that the SEC may be shifting towards a more crypto-friendly stance, particularly after recent approvals of Bitcoin and Ethereum ETFs. However, XRP has a more contentious regulatory history, with the SEC’s lawsuit against Ripple still influencing investor sentiment.
What Are the Chances of Approval?
- Precedents from Bitcoin & Ethereum ETFs: The SEC’s recent approvals of spot Bitcoin ETFs set a precedent, but XRP’s regulatory battles may pose additional scrutiny.
- Ripple’s Legal Standing: The outcome of Ripple’s ongoing regulatory challenges could heavily impact the ETF’s approval odds.
- Market Demand for Crypto ETFs: Institutional interest in crypto-based financial products is rising, increasing pressure on regulators to greenlight additional ETFs.
XRP Price Reaction and Market Sentiment
Following the announcement of Franklin Templeton’s XRP ETF filing, XRP’s price surged by 4.2% in the past 24 hours, mirroring broader crypto market gains. Historically, ETF-related news has significantly impacted cryptocurrency markets. For instance, Bitcoin’s spot ETF approval in January 2024 triggered a substantial rally, with BTC reaching new highs. Similarly, Franklin Templeton’s move has reignited excitement in the XRP market, leading to an immediate price surge.
However, the U.S. Securities and Exchange Commission (SEC) has up to 240 days to approve or deny the filing, placing a potential decision in late 2025. If approved, the ETF could be a turning point for XRP’s institutional adoption and long-term valuation. Investors are to stay informed as the regulatory process unfolds.
Why Is XRP Rallying?
- Increased Institutional Interest: Franklin Templeton’s move is seen as a bullish indicator, suggesting institutional investors are preparing for regulated XRP exposure.
- Speculation on SEC Approval: With multiple firms vying for XRP ETFs, investors are betting on the potential approval of at least one application.
- Positive Market Recovery: The whole cryptocurrency market has rebounded recently, contributing to XRP’s price momentum.
XRP Price Performance and Predictions
While the price reaction is promising, XRP’s long-term performance will largely depend on regulatory developments and continued institutional adoption. Franklin Templeton’s XRP ETF filing has sparked renewed investor enthusiasm, leading to a 4.2% price surge in the past 24 hours.
As of March 12, 2025, XRP is trading at $2.19, reflecting a 2.51% increase from the previous close. This uptick aligns with recent developments, including Franklin Templeton’s filing for an XRP exchange-traded fund (ETF), which has bolstered investor confidence.
Analysts have varied predictions for XRP’s future value. Antonio Di Giacomo of XS.com anticipates a challenging climb to $3, while Arthur Azizov of B2BinPay forecasts a range between $5 to $7 in the first half of 2025, driven by post-election momentum and Ripple’s advancements.
Hani Abuagla of XTB notes projections ranging from $100 to a conservative $5, based on potential regulatory easing and Ripple’s progress in cross-border payments. However, he cautions about high uncertainty and volatility. Ryan Lee of Bitget Research mentions estimates between $1.80 and $8.40, with possibilities of surpassing $10.
In the short term, XRP faces resistance around $2.50. A successful breakout could pave the way toward $3.00. Conversely, if the SEC delays or rejects the ETF filing, XRP might retest support levels near $2.00. Factors such as institutional demand, overall crypto market conditions, and regulatory clarity will play crucial roles in XRP’s long-term price movement.
In summary, while short-term volatility persists, the ETF narrative and institutional interest could drive XRP toward new highs, making 2025 a pivotal year for the asset.
Institutional Race for XRP ETFs: Who Else Is Competing?
Franklin Templeton isn’t the only financial powerhouse looking to introduce an XRP ETF. Several major firms have already filed their own applications, including:
- Bitwise – One of the earliest applicants in the XRP ETF race.
- 21Shares – A well-known player in the crypto ETF space.
- Grayscale – While not yet confirmed, speculation remains that Grayscale may follow suit.
With more institutions expressing interest in XRP-based investment products, the competition to secure the first SEC-approved XRP ETF is intensifying.
Conclusion
Franklin Templeton’s decision to file for an XRP ETF marks another milestone in the growing institutional adoption of cryptocurrency investment products. While regulatory hurdles remain, the increasing number of financial firms entering the XRP ETF race suggests strong market demand.
As the SEC deliberates on multiple XRP ETF applications, investors and market participants will be closely watching for any signs of regulatory approval. If granted, an XRP ETF could be a game-changer, providing mainstream investors with a new way to engage with the crypto market.
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FAQs
1. What is an XRP ETF, and how does it work?
An XRP ETF is a regulated investment vehicle that allows investors to gain exposure to XRP without directly holding the cryptocurrency. It tracks the spot price of XRP and is traded on a traditional stock exchange.
2. Why is Franklin Templeton filing for an XRP ETF?
Franklin Templeton is aiming to provide institutional and retail investors with a regulated way to invest in XRP, capitalizing on increasing demand for crypto-based financial products.
3. When will the SEC decide on Franklin Templeton’s XRP ETF?
The SEC has up to 240 days (potentially late 2025) to approve or deny the application. The decision will depend on regulatory conditions and market demand.
4. How would an XRP ETF impact the price of XRP?
If approved, an XRP ETF could drive significant institutional inflows, increasing liquidity and demand for XRP. This could have a positive impact on XRP’s price over the long term.
Glossary
ETF (Exchange-Traded Fund): An investment fund that holds assets like stocks, commodities, or cryptocurrencies and trades on a stock exchange.
SEC (U.S. Securities and Exchange Commission): The U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.
Spot Price: The current market price at which an asset can be bought or sold for immediate delivery.
Coinbase Custody: A custody service provided by Coinbase, offering secure storage solutions for institutional investors holding digital assets.
Cboe BZX Exchange: A U.S.-based securities exchange that lists various financial products, including ETFs.
Fork: A change to a blockchain’s protocol that can result in a split, creating two separate chains.
Airdrop: A distribution of cryptocurrency tokens to a specific group, often used as a marketing strategy or reward mechanism.
Liquidity: The ease with which an asset can be quickly converted into cash without significantly affecting its price.
Reference
Disclaimer
This article is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments are highly volatile and subject to risks. Readers should conduct their own research and consult a financial advisor before investing. The author and publisher are not responsible for any financial losses.
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