TLDR
- Franklin Templeton filed a preliminary application for an XRP ETF, joining Bitwise, 21Shares, and others in the race
- The SEC delayed its decision on Grayscale’s XRP ETF application, potentially taking until mid-October 2025
- XRP ETF shares would trade on Cboe BZX Exchange with assets held via Coinbase Custody
- The SEC has up to 240 days to approve or deny applications, meaning decisions could come in late 2025
- XRP price recently rose to $2.19, up nearly 9%, though down from its post-election peak of $3.38
Investment giant Franklin Templeton has filed a preliminary application for an XRP exchange-traded fund (ETF), joining a growing number of financial asset providers hoping to offer XRP investment products to the general public. The company submitted its application on Tuesday for the Franklin XRP ETF.
The proposed ETF aims to track the spot price of XRP minus fees. Assets would be held via Coinbase Custody, according to the filing details.
Shares of the proposed Franklin XRP ETF would trade on the Cboe BZX Exchange. Authorized participants would create or redeem shares in blocks using cash, which would then be converted to XRP through a third-party.
The filing notes that shareholders would not benefit from XRP Ledger forks or airdrops. This means investors would only gain exposure to the price movement of XRP itself.
The application is still preliminary. This gives the Securities and Exchange Commission (SEC) up to 240 days to either approve or deny it.
This timeline could push a final decision to late 2025. Franklin Templeton joins several other companies that have already filed for XRP ETFs.
Other applicants include Bitwise, 21Shares, Canary Capital, WisdomTree, and CoinShares. All are betting on a shift toward more crypto-friendly regulations.
The SEC delayed its decision on Grayscale’s application
The SEC recently delayed its decision on Grayscale’s application for an XRP ETF. In a notice filed on Tuesday, the Commission stated that “a longer period” of time is needed to determine whether to approve or deny the application.
When the SEC recognized Grayscale’s application last month, it triggered an initial review period of 45 days. The SEC can extend that timeline up to 240 days after Grayscale’s proposal was published to the Federal Register.
The May 21 deadline is approaching next. The agency may take until mid-October to make its final decision on Grayscale’s application.
These XRP filings are part of a wider trend of major issuers submitting applications for crypto ETFs. The trend follows the launch of spot Bitcoin ETFs, which have become the fastest-growing category of funds in ETF history.
Bitcoin ETFs now manage close to $100 billion in assets. This success has encouraged issuers to pursue ETFs for other cryptocurrencies, including XRP.
CEO describes XRP ETF as “inevitable”
Last year, Ripple Labs CEO Brad Garlinghouse described the approval of an XRP ETF in the U.S. as “inevitable.” He cited overwhelming demand from both institutional and retail investors as the reason.
XRP’s price has shown positive movement recently. It rose to $2.19, up nearly 9% according to crypto data provider CoinGecko.
While this is below its post-election peak of $3.38, XRP has maintained its gains better than competitors like Bitcoin and Ethereum since November 5. The current price represents a 4.2% increase in the past 24 hours.
Experts believe that U.S. President Donald Trump’s reelection was helpful for XRP. Under former SEC Chair Gary Gensler, the cryptocurrency’s regulatory status was challenged when the agency pursued a lawsuit against Ripple Labs over XRP sales.
Though the SEC has not abandoned its enforcement case against Ripple Labs, the agency has been winding down similar high-profile actions against exchanges like Coinbase and Kraken. This change in approach may signal a more favorable regulatory environment for XRP and similar assets.
The growing interest in XRP ETFs comes amid surging demand for digital asset investments packaged in traditional financial products. Investors are looking for regulated vehicles to gain exposure to cryptocurrencies like XRP.
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