Franklin Templeton Enters XRP ETF Race Amid SEC Delays

Global asset manager Franklin Templeton has made a significant move by entering the XRP ETF race, indicating its interest in launching a spot XRP exchange-traded fund. This development comes as part of a trend where various financial institutions are seeking regulatory approval to introduce such investment products.

The proposed Franklin XRP Trust seeks to offer investors direct exposure to Ripple’s XRP, enabling them to track the digital asset’s price without the need to hold it themselves. If approved, this ETF will be listed on the Cboe BZX Exchange, with Coinbase Custody serving as the custodian for the fund. The filing states that the fund aims to mirror the performance of XRP’s price before deducting expenses.

Franklin Templeton’s move adds them to a list of asset managers like Grayscale, WisdomTree, Bitwise, 21Shares, and Canary Capital, all waiting for regulatory decisions on their respective XRP ETF proposals. However, the SEC has announced a delay in its decision on the Grayscale and Canary XRP ETF applications, citing the need for more time to review the filings and assess the implications of approving an XRP-based investment product. The revised deadline for a decision on these applications has been set for May 21, 2025.

The postponement of the SEC’s decision has created uncertainty regarding the approval of XRP ETFs, given the regulator’s history of prolonging decisions related to crypto-related investment products. Market participants remain cautious about predicting a timeframe for a final ruling on these applications.

The news of Franklin Templeton’s XRP ETF filing has sparked a moderate surge in the XRP price, with the cryptocurrency trading at $2.17, up by 3.51% in the last 24 hours. This rise is part of a broader market recovery, with a renewed interest in Ripple’s XRP among investors as institutional adoption of cryptocurrencies grows.

Analysts are optimistic about XRP price predictions, attributing them to increased institutional demand and the potential approval of spot XRP ETFs. The entry of major players like Franklin Templeton could further reinforce market confidence in Ripple’s XRP as a legitimate investment asset.

On another front, the Ripple lawsuit against the SEC is nearing a potential resolution, with key deadlines approaching. Legal experts anticipate significant developments before April 16, 2025, when Ripple is expected to submit its appellate brief. There is speculation about a potential settlement in the case, which could have far-reaching implications for the Ripple market and regulatory strategies regarding cryptocurrencies.

Ripple CEO Brad Garlinghouse has expressed confidence in the company’s victory in the lawsuit, emphasizing the importance of regulatory clarity for the future of digital assets. A favorable resolution could enhance institutional acceptance of Ripple exchange products and strengthen trust in the platform.

Looking ahead, the regulatory landscape for XRP ETFs and the resolution of the Ripple lawsuit could be decisive for Ripple investors. Approval for ETFs from Franklin Templeton and others could mark a significant milestone for institutional participation in the XRP market. As investors and traders monitor the XRP price and significant resistance levels, the future role of XRP in the global financial system remains promising, especially with collaborations like Bank of America-Ripple partnerships paving the way for broader adoption in the new digital economy.