Franklin Templeton Files for XRP ETF with SEC

Franklin Templeton has filed for regulatory approval to launch an exchange-traded fund (ETF) that would track the price of XRP, the fourth-largest cryptocurrency by market capitalization. The firm, which manages $1.5 trillion in assets, submitted an S-1 registration with the U.S. Securities and Exchange Commission (SEC) on Tuesday.

If approved, the Franklin XRP ETF will be listed on the Cboe BZX Exchange. The filing states that shares of the fund will mirror the price movement of XRP, offering investors exposure to the asset without requiring direct ownership or peer-to-peer transactions.

“The Shares are intended to offer a convenient means of making an investment similar to an investment in XRP relative to acquiring, holding and trading XRP directly on a peer-to-peer or other basis or via a digital asset platform,” the filing explains.

The ETF is designed as a passive investment vehicle, meaning it will not attempt to buy or sell XRP based on price movements. Franklin Templeton made it clear that the fund will not use leverage or derivatives to achieve its objectives.

“The Sponsor does not sell XRP at times when its price is high or acquire XRP at low prices in the expectation of future price increases. The Fund will not utilize leverage, derivatives or similar instruments or transactions in seeking to meet its investment objective.”

To ensure security, the fund’s XRP holdings will be held in cold storage by Coinbase Custody Trust Company, which provides third-party custody services for institutional investors.

If approved, Franklin Templeton’s XRP ETF would add to the growing list of cryptocurrency-backed investment products, further integrating digital assets into traditional financial markets.