Franklin Templeton Submits XRP Spot ETF Application

According to Nate Geraci, president of The ETF Store, Franklin Templeton, an asset management company with a global management scale of over $1.5 trillion, has officially entered the XRP ETF competition.

President of The ETF Store: Franklin Templeton Submits XRP Spot ETF Application

According to Nate Geraci, president of The ETF Store, Franklin Templeton, an asset management company with a global management scale of over $1.5 trillion, has officially entered the XRP ETF competition.

According to the preliminary prospectus submitted on March 11, Franklin XRP Trust will issue Franklin XRP ETF fund shares, which mainly holds XRP held by the custodian on behalf of the fund, and aims to track the overall performance of XRP prices. Franklin Holdings, LLC will serve as the sponsor of the trust and fund, and Coinbase Custody Trust Company will serve as the custodian of XRP assets.

The ETF fund will not be engaged in any active management of XRP or attempt to time the market. The value of the fund's shares will fluctuate with changes in the market price of XRP and other factors.

In December last year, the U.S. Securities and Exchange Commission (SEC) rejected the application for an XRP spot ETF submitted by the ETC ETF provider. In January this year, the SEC reached a settlement with cryptocurrency exchange Binance over the sale of unregistered securities.

After the SEC chairman announced at a March 2024 meeting that the agency planned to review pending applications for bitcoin spot ETFs “shortly,” there were rumors that the SEC staff had recommended approval of several bitcoin spot ETF applications.

However, the SEC has postponed the approval of several cryptocurrency spot ETF applications, including Grayscale's application for a Cardano (ADA) spot ETF and Canary's application for a Litecoin (LTC) spot ETF.

Earlier news, Grayscale applied to convert its Bitcoin trust into an ETF in 2014, but the SEC refused. In June 2024, Grayscale sued the SEC for rejecting its application to launch a spot bitcoin ETF while approving several futures ETFs. In February this year, a U.S. court ruled that the SEC had acted arbitrarily in rejecting Grayscale's application for a spot bitcoin ETF and ordered the agency to review the application again.

After the court ruling, the SEC announced that it would review the applications for bitcoin spot ETFs submitted by Bitwise Invest and WisdomTree, and planned to make a decision by March 18. However, later news showed that the SEC had postponed the review of the two bitcoin spot ETF applications.