Franklin Templeton Files for XRP ETF, Ripple CEO Reacts

Franklin Templeton, a global asset management firm overseeing more than $1.5 trillion in assets, has officially entered the competition to introduce an XRP exchange-traded fund (ETF) in the United States. The firm recently submitted an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), marking a key step toward launching its XRP ETF.

The Franklin XRP Trust is structured as a Delaware Statutory Trust and is designed to track the market performance of the token. The ETF will provide investors with indirect exposure to the cryptocurrency without requiring direct ownership. Franklin Templeton has appointed Coinbase Custody as the custodian responsible for safeguarding the XRP assets held by the trust.

Additionally, the CSC Delaware Trust Company will act as the sole trustee of the fund, while another entity—whose name was not disclosed—will handle cash custody, transfer agent duties, and administrative functions. Franklin Templeton will serve as the sponsor and marketing agent for the fund.

The filing also confirms that the ETF shares will be listed on the Cboe BZX exchange, aligning with the platform chosen by other asset managers, including WisdomTree, Canary Capital, and 21Shares, which have also applied to launch XRP ETFs.

Ripple CEO and Industry Experts React

Following Franklin Templeton’s filing, Ripple CEO Brad Garlinghouse acknowledged the development on social media with a brief but notable reaction, posting an eye emoji. His response quickly caught the attention of the community.

Nate Geraci, President of The ETF Store, also weighed in, highlighting Franklin Templeton’s prominence in the asset management industry. He described the firm as a significant player in the ongoing push for cryptocurrency ETFs.

Regulatory Process and SEC Review

With the S-1 registration now submitted, the next step requires Cboe to file a corresponding 19b-4 form with the SEC. This filing formally signals the exchange’s intent to list the ETF’s shares. The SEC will then begin its review process, which typically spans a maximum period of 240 days before a final decision is issued.

Many analysts expect the SEC to acknowledge Franklin Templeton’s filing, as it has done with similar applications from other firms. However, it remains uncertain whether regulatory approval will be granted, given the SEC’s cautious stance on cryptocurrency-related financial products.

Impact of the SEC v. Ripple Lawsuit

The ongoing legal dispute between Ripple and the SEC adds another layer of complexity to the XRP ETF landscape. The case, currently pending before the U.S. Court of Appeals for the Second Circuit, stems from the SEC’s claim that Ripple’s institutional sales of XRP constituted unregistered securities transactions.

A prior court ruling found that Ripple’s XRP sales to institutional investors met the criteria of investment contracts, leading to a $125 million penalty and restrictions on future institutional sales. Ripple is reportedly in negotiations to overturn this decision, which could have significant implications for both the company and the broader regulatory status of XRP.

Despite the unresolved lawsuit, interest in XRP ETFs continues to grow. Several asset managers remain optimistic about securing approval, seeing XRP as a viable addition to the expanding landscape of cryptocurrency-based financial products.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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