Franklin Templeton Enters XRP ETF Race

Franklin Templeton, an asset manager with over $1.5 trillion in assets, has joined the race to launch an XRP ETF in the U.S.

The development was initially reported by The Crypto Basic on its official X handle.

The leading asset manager officially submitted an S-1 registration with the U.S. SEC on March 11. This follows the earlier registration of an XRP Trust in Delaware.

> Massive Name enters XRP ETF Race.
> $1.5+ trillion asset manager Franklin Templeton officially submits XRP ETF application.
> — TheCryptoBasic (@thecryptobasic) March 12, 2025

Key Details of Franklin XRP Trust

Similar to previous filings from other asset managers, the Franklin XRP Trust will track XRP’s price performance, allowing investors indirect exposure to the underlying asset.

According to the filing, Franklin Templeton structured the fund as a Delaware Statutory Trust and selected Coinbase Custody as the custodian of the fund’s XRP assets.

While CSC Delaware Trust Company will serve as the sole trustee, an unnamed custodian will manage the XRP Trust’s cash holdings and act as the transfer agent and administrator of the fund.

Additionally, Franklin sponsors the XRP Trust and will serve as its marketing agent. Interestingly, shares of the XRP Trust will be listed and traded on the Cboe BZX exchange. Other prospective issuers such as WisdomTree, Canary Capital, and 21Shares have also selected Cboe BZX for their XRP ETFs.

Ripple CEO Reacts

Franklin’s XRP ETF filing drew reactions from key crypto stakeholders, including Ripple CEO Brad Garlinghouse, who expressed delight and captured the XRP community’s attention with an eye emoji.

Nate Geraci, President of The ETF Store, also chimed in, labeling Franklin Templeton a “big name.”

Next Step

After Franklin’s S-1 application, Cboe must file a 19b-4 with the SEC to signal its interest in listing shares of the fund. Like other XRP ETF issuers, Franklin will await the SEC’s acknowledgment of its exchange application.

Once acknowledged, the SEC will have a 240-day window to decide on approving or denying the launch of the Franklin XRP Trust.

Several industry experts anticipate the SEC will acknowledge the filing, as it did with others.

Despite ongoing litigation in the SEC v. Ripple case, filings for XRP ETFs continue. The case is currently in the Court of Appeals for the Second Circuit. While the current SEC leadership has been pausing other crypto-related lawsuits, an official decision regarding the Ripple case remains pending.

Legal experts attribute the delay to Garlinghouse’s negotiations to overturn the trial court’s finding, which classified XRP institutional sales as investment contracts. This led to a $125 million fine against Ripple and an injunction on future XRP sales to institutional clients. Overturning this decision could allow Ripple to continue selling XRP to institutional clients, potentially resolving regulatory uncertainty around the asset.