Franklin Templeton Joins the Race for an XRP Exchange-Traded Fund (ETF)
In a recent development in the world of cryptocurrency and exchange-traded funds (ETFs), American asset manager Franklin Templeton has entered the growing XRP ETF race. The company filed an application with the United States Securities and Exchange Commission (SEC) on March 11, 2023, to launch an XRP-backed ETF. This makes Franklin Templeton the latest firm to join the list of applicants seeking to bring an XRP ETF to the market.
Design and Structure of Franklin Templeton’s XRP ETF
According to the official filing, the proposed ETF, XRP Shares, is designed to track the performance of the XRP price. The ETF will hold XRP as its underlying asset, with the XRP holdings to be custodied at Coinbase Custody Trust. This structure is similar to other cryptocurrency ETFs that have been proposed or approved in the past, such as the Bitcoin Strategy ETF (BITO) and the ProShares Bitcoin Strategy ETF (BITP).
SEC Postpones Decisions on Multiple Crypto ETF Applications
Interestingly, on the same day that Franklin Templeton filed its application for an XRP ETF, the SEC postponed decisions on multiple crypto ETF filings, including Grayscale’s proposal to convert its XRP Trust into an ETF. The SEC’s decision to delay these applications comes as the regulatory body continues to review and consider the various applications for cryptocurrency ETFs. The exact reasons for the delay are not disclosed in the official SEC statements.
Impact on Individual Investors
For individual investors, the entry of Franklin Templeton into the XRP ETF race could mean increased access to XRP as an investment option. If approved, the XRP ETF would allow investors to gain exposure to the price movements of XRP without having to directly purchase and hold the cryptocurrency. This could make XRP more accessible to a wider audience, including those who may not have the means or desire to purchase and store the cryptocurrency themselves.
Impact on the World
On a larger scale, the approval of an XRP ETF could have significant implications for the cryptocurrency market as a whole. An XRP ETF would add another major player to the list of approved cryptocurrency ETFs, further legitimizing the asset class in the eyes of traditional financial institutions and investors. It could also lead to increased institutional adoption of XRP, potentially driving up the price and increasing demand for the cryptocurrency.
Conclusion
The entry of Franklin Templeton into the XRP ETF race is a significant development in the world of cryptocurrency and ETFs. If approved, the XRP ETF would provide investors with a new way to gain exposure to XRP, potentially increasing its accessibility and driving up demand. The decision of the SEC on the application, as well as other crypto ETF filings, continues to be closely watched by the industry. Only time will tell if this is the beginning of a new trend in the world of cryptocurrency investing.
- Franklin Templeton files for an XRP ETF with the SEC
- Proposed ETF designed to track the performance of XRP price
- XRP holdings to be custodied at Coinbase Custody Trust
- SEC postpones decisions on multiple crypto ETF applications, including Grayscale’s XRP Trust conversion
- Approval of XRP ETF could increase accessibility and legitimacy of XRP
- Impact on cryptocurrency market as a whole remains to be seen
