Franklin Templeton Files an S-1 Form to Launch an XRP ETF

Investment company Franklin Templeton was the latest to file for the launch of a new ETF based on the XRP token.

Investment company Franklin Templeton has filed for the launch of a new ETF based on the XRP token. The company is aiming to expand the available ETF based on digital assets with an XRP-based fund.

The filing comes at a moment of fearful market sentiment, where altcoins are seen as much riskier. XRP, however, tries to stand out as an asset with utility for the global finance ecosystem. The fund’s shares have been designed to replace an investment in XRP through crypto exchanges, including the need to self-custody XRP in a wallet.

The Shares aim to reflect the intrinsic value of XRP, while providing an alternative way of achieving exposure. Franklin Templeton targets those that are more comfortable with the stock market than crypto holdings.

The new fund will derive its price from the CME CF XRP-Dollar Reference Rate and the shares will be created and redeemed in predetermined batches, only by Authorized Participants.

After the latest filing, Franklin Templeton joins the growing list of attempts to build a specialized XRP fund. Other filings came from Bitwise, 21Shares, Canary Capital, Grayscale, and Wisdom Tree. After Franklin Templeton’s attempt, XRP has a total of 17 ETF proposals in various stages of discussion and approval.

The latest inclusion of Franklin Templeton is part of the fund’s toolset in connecting crypto and traditional finance.

The intended fund, if approved is expected to trade on the CBOE BZX Exchange. The XRP underlying the shares would be held by Coinbase Custody, as is the usual approach of Franklin Templeton.

To launch trading, Franklin Templeton registered the Trust for the ETF as a Delaware statutory trust on February 28, 2025, and the Trust will operate as an emerging growth company under the JOBS Act.

The fund’s purpose will be to give exposure to XRP as an underlying asset. The ETF’s asset mix will include both XRP tokens and cash in a predetermined ratio.

Franklin Templeton will serve as the fund’s Sponsor, but will not be liable for extraordinary expenses, such as lawsuits or other unusual claims. The investment company will take over some recurring fees and expenses related to the fund.

XRP remains the fourth largest crypto asset by market capitalization, after staging its recovery from a prolonged bear market. XRP rallied after the US SEC abandoned its prolonged lawsuit on the status of XRP as an unregistered security.

The token rallied from its range-bound trading under $0.50 close to $2. Currently, XRP trades around $2.20, retaining some of the recent gains. XRP also expanded after being mentioned as one of the potential assets to be included in a US strategic crypto reserve.

The S-1 filing advances the process to the next stage, which is the SEC’s response and comments, but it does not instantly result in the fund receiving approval.