Franklin Templeton files for $1.5 trillion XRP ETF with CBOE
In a significant move that could shape the future of the cryptocurrency market, Franklin Templeton, a renowned asset manager with assets totaling $1.5 trillion, has filed for a spot XRP exchange-traded fund (ETF) with the Chicago Board Options Exchange (CBOE). This development follows the recent approvals of spot Bitcoin and Ethereum ETFs in the United States, marking a notable step towards mainstream acceptance of digital assets.
The filing, submitted to the Securities and Exchange Commission (SEC) under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares, seeks to list and trade shares of the Franklin XRP ETF. The proposed ETF would track the price of XRP through the CME CF XRP-Dollar Reference Rate, with CSC Delaware Trust Company serving as the trustee and Coinbase Custody Trust Company, LLC handling custody of the fund’s XRP.
Should the ETF gain approval, it could provide traditional investors with regulated exposure to XRP without requiring direct ownership of the cryptocurrency. This opportunity could attract significant institutional capital into the XRP markets, potentially influencing the digital asset’s price and market dynamics.
The XRP community has expressed enthusiasm and optimism regarding the potential approval of the ETF, with many users anticipating positive market movements and increased investment interest in XRP. Industry experts and stakeholders are closely monitoring regulatory developments surrounding the ETF application, with hopes for a favorable outcome that could bolster confidence in XRP as an investable asset class.
The timing of Franklin Templeton’s filing is notable, coming after Ripple Labs’ legal victory in July 2023, where the court ruled that XRP did not meet the criteria of an investment contract under federal law. This clarification on XRP’s regulatory status may have contributed to the decision to pursue an ETF for the digital asset, signaling growing confidence in the market’s regulatory environment.
The unique features of XRP highlighted in the SEC filing, such as its consensus-based algorithm, energy-efficient network, high transaction throughput, low fees, and fixed token supply since launch in 2012, underscore the digital asset’s potential as a valuable investment vehicle. An approved XRP ETF would offer retail investors a convenient avenue to access XRP through traditional brokerage accounts, eliminating the need for cryptocurrency exchanges or wallets.
As the crypto industry evolves and matures, developments like the potential approval of an XRP ETF demonstrate the increasing integration of digital assets into mainstream financial markets. The successful launches of spot Bitcoin and Ethereum ETFs in recent years have set a precedent for the acceptance of cryptocurrencies as legitimate investment options, paving the way for further innovation and growth in the space.
Overall, Franklin Templeton’s bold step towards securing approval for a spot XRP ETF reflects a broader trend of financial institutions recognizing the value and potential of digital assets. The outcome of the SEC review process will be closely watched by market participants and enthusiasts, with implications for the future trajectory of the XRP market and the broader crypto ecosystem.
