XRP ETF race heats up as Franklin Templeton submits S-1 registration
The application requires approval from the SEC
Franklin Templeton has joined the growing list of asset managers seeking approval for an XRP ETF, alongside Bitwise, 21Shares, Canary Capital, Grayscale, and WisdomTree.
According to Crypto Briefing, Franklin Holdings, the parent company of Franklin Templeton, has filed an S-1 registration form with the SEC to launch an XRP ETF.
The fund aims to provide investors with exposure to XRP, currently the fourth-largest crypto asset by market capitalization, and if approved, it will be listed on the CBOE BZX Exchange.
Key details from the filing
The ticker symbol for the ETF has not yet been determined. However:
Coinbase Custody will serve as the custodian for the fund’s XRP holdings.
Coinbase will act as the primary broker.
CSC Delaware Trust Company will serve as the trustee.
The ETF shares will be offered continuously at net asset value (NAV) and will only be available to authorized participants.
The CME CF XRP-USD benchmark rate will be used to determine the fund’s NAV.
Franklin Holdings will sponsor the ETF and has agreed to cover most operational expenses in exchange for a sponsor’s fee. The trust is structured as an emerging growth company under the JOBS Act.
The filing also outlines potential risks, including
XRP’s price volatility
Regulatory uncertainty
Potential security breaches
Tax complications
Additionally, the fund will not acquire any forked assets or incidental rights from the XRP blockchain.
Before trading can commence, the SEC must review and approve the filing.
In February, the CBOE BZX exchange filed applications to list multiple spot XRP ETFs, including those from Bitwise, 21Shares, and Canary Capital, signaling growing institutional interest following the earlier approvals of Bitcoin and Ethereum ETFs.
As we wrote, Franklin Templeton has filed registration documents for the Franklin Solana Trust in Delaware, joining other firms seeking to bring Solana to the exchange-traded product (ETP) market.
