Forward Guidance Newsletter

Franklin Templeton’s XRP ETF proposal yesterday is just one of several that the SEC is weighing. Still, it marks the first filing from a traditional finance giant.

Crypto and ETF investors alike are waiting to see what type of spot crypto product the newly restructured securities regulator might choose to allow next.

Bloomberg Intelligence analysts last month assigned the highest odds (90%) for litecoin ETFs being approved by the end of the year, followed by dogecoin (75%), solana (70%), and XRP products (65%). The lower odds for XRP stem from the SEC’s ongoing lawsuit against Ripple, which remains unresolved.

Franklin Templeton’s XRP ETF filing joins those from Grayscale, Bitwise, WisdomTree, and others. The SEC is currently reviewing these proposals, having delayed its decision on Grayscale’s proposal yesterday.

Franklin manages approximately $1.5 trillion in assets—a substantial figure that demands attention when a prominent fund group seeks a new product.

Recall that BlackRock’s entry into the bitcoin ETF race in June 2023 generated significant interest and optimism. That said, Grayscale’s court victory over the SEC played a crucial role in influencing the regulatory landscape rather than BlackRock’s stature alone.

Additionally, Roger Bayston of Franklin Templeton accurately predicted last December that ETF legal teams would be busy during the first part of 2025. Recently, Franklin Templeton launched a crypto index fund, currently limited to holding BTC and ETH, and filed for a solana ETF.

As of now, BlackRock has not entered the altcoin ETF proposal discussions. Executives have indicated that their focus remains on BTC and ETH for the time being, with no clear answer on a potential SOL ETF proposal.

The SEC has approximately seven months left to issue decisions on any of the recognized crypto ETFs. It remains to be seen which major firm might join the proposal list in the meantime.