Franklin Templeton, a financial powerhouse managing $1.6 trillion in assets, has officially submitted paperwork to the U.S. Securities and Exchange Commission (SEC) to launch a spot XRP exchange-traded fund (ETF). The firm joins a growing list of issuers aiming to capitalize on anticipated regulatory shifts under the new Trump administration.
The investment giant had already established a trust in Delaware earlier this year, linked to its proposed spot XRP ETF. Now, with its latest filing of an S-1 form, Franklin Templeton is taking a major step toward offering U.S. investors a regulated means to gain exposure to XRP, the native asset of Ripple’s XRP Ledger blockchain.
According to Tuesday’s filing, the proposed ETF would be listed on the CBOE BZX Exchange. If approved, Coinbase Custody would manage the fund’s XRP holdings, while CSC Delaware Trust Company would act as the trustee. This move comes as the SEC has recently accepted several XRP ETF applications for review, signaling a potential breakthrough for the fourth-largest cryptocurrency by market capitalization.
The approval of these ETFs could be a game changer, unlocking significant institutional capital and increasing demand for XRP. At the time of writing, XRP is trading at $2.20, marking a 6% increase over the past 24 hours. The prospect of a regulated investment vehicle for XRP has fueled market optimism, with traders anticipating a surge in adoption if the SEC greenlights these applications.
This development also follows a wave of similar filings by major asset managers such as Bitwise, WisdomTree, Canary Capital, 21Shares, and Grayscale. Their growing interest in XRP ETFs reflects a shift in sentiment, with institutional players increasingly viewing the token as a viable asset class.
Last year, Ripple Labs CEO Brad Garlinghouse described the approval of an XRP ETF as “inevitable,” emphasizing the strong demand from both institutional and retail investors. Market observers believe that President Trump’s reelection has bolstered XRP’s prospects, particularly given the cryptocurrency’s past regulatory struggles under the SEC’s previous leadership.
During Gary Gensler’s tenure as SEC chair, the agency aggressively pursued legal action against Ripple, arguing that XRP sales constituted an unregistered securities offering. However, a landmark court ruling determined that XRP was not a security when sold to retail investors through exchanges. The decision dealt a blow to the SEC’s case, though the agency has since filed an appeal, with Ripple lodging a cross-appeal in response.
Despite dropping similar lawsuits against companies like Coinbase, Robinhood, and Kraken, the SEC has yet to withdraw its case against Ripple. The ongoing legal battle continues to cast uncertainty over XRP’s regulatory status, but the latest ETF filings suggest that major financial institutions are betting on a favorable outcome.
As the crypto industry awaits the SEC’s decision, the approval of a spot XRP ETF could mark a turning point for the asset, legitimizing it further in traditional finance and potentially driving its price to new heights. Whether Franklin Templeton’s bid succeeds remains to be seen, but one thing is clear: institutional interest in XRP is stronger than ever.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist