Franklin Templeton has filed for an exchange-traded fund (ETF) that will track the spot price of XRP, one of the leading cryptocurrencies, marking a notable step in the growing trend of asset managers expanding their focus beyond Bitcoin. The filing, submitted on Tuesday, also reflects the increasing appetite for digital assets among institutional investors. XRP, created by U.S.-based company Ripple, has a market capitalization of approximately $124 billion, making it the world’s fourth-largest cryptocurrency.
This filing is part of a broader shift in the cryptocurrency market, as Franklin Templeton follows up on a similar filing last month for an ETF tracking the spot price of Solana. Earlier this year, Grayscale Investments launched a fund based on Dogecoin, further signaling that investors are looking to diversify into digital assets beyond Bitcoin. The growing interest in these alternative cryptocurrencies is taking place amid a more favorable regulatory environment under the administration of President Donald Trump, who is expected to take a more accommodating stance toward digital assets.
XRP has seen a dramatic rise in value, more than tripling in the last 12 months, despite a recent market correction. This growth has drawn the attention of institutional investors, who increasingly view digital assets as a viable part of their portfolios. The filing by Franklin Templeton is seen as a strategic move to tap into the potential of XRP as it continues to gain popularity. The ETF, once launched, is set to list on the Cboe BZX Exchange, a key step in making XRP more accessible to traditional investors.
In terms of the ETF structure, Coinbase has been appointed as the custodian for the fund’s XRP holdings. This decision highlights the increasing role of cryptocurrency exchanges in institutional financial products. By appointing a well-known and trusted custodian like Coinbase, Franklin Templeton aims to provide reassurance to investors who may be wary of the risks associated with holding digital assets.
The filing also coincides with the growing interest in XRP from U.S. policymakers. President Trump’s administration has signaled that it plans to include XRP as part of a new strategic reserve, which would further solidify the token’s place in the broader financial ecosystem. This move aligns with the U.S. government’s efforts to position digital assets more prominently in its economic strategy.
As the cryptocurrency market continues to evolve, institutional interest in assets like XRP is expected to grow. Franklin Templeton’s filing for an XRP ETF is a clear indication of this trend and the increasing mainstream acceptance of digital assets in traditional investment portfolios. The company’s move also reflects the changing regulatory landscape, which is making it easier for asset managers to engage with cryptocurrencies in a more structured and secure manner.
