Franklin Templeton Files for Spot XRP ETF in the U.S.
As indicated in our previous news brief, Franklin Templeton, an investment management firm overseeing more than $1.5 trillion in assets, filed on March 11 to launch a spot XRP exchange-traded fund (ETF) in the United States. The filing came in the form of an S-1 registration with the U.S. Securities and Exchange Commission (SEC).
The U.S. SEC has now postponed its decision on Franklin Templeton’s XRP ETF application, which was originally expected by May 3. Former Fox Business reporter Eleanor Terrett discussed the matter with Bloomberg ETF analyst James Seyffart, who remarked that most of the crypto ETF final decisions will likely fall in the fourth quarter. For the XRP spot ETF, Seyffart expects a final decision deadline around October 18.
In its official report, the SEC stated,
The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein. Accordingly, the Commission designates June 17, 2025, as the date by which the Commission shall either approve or disapprove.
The Franklin Templeton XRP ETF is structured to track the performance of XRP tokens, offering investors a way to gain exposure to the cryptocurrency without the need to hold it directly. The fund’s XRP holdings will be held by Coinbase Custody, with CSC Delaware Trust Company being the trustee over the trust. Additionally, a third-party company whose name has not been disclosed will handle cash management of the trust and perform administrative and transfer agent duties for day-to-day activities to run smoothly.
Other XRP ETF Applications Delayed
The SEC has also hit pause on deciding on several other XRP ETF proposals. These applications, put forward by well-known firms like VanEck, WisdomTree, Canary, Grayscale, and 21Shares, were initially expected to get feedback sooner. However, the agency has now pushed the review window to between May 21 and May 22, giving itself a bit more time to evaluate the filings.
This delay is a testament to the conservatism of the SEC and meticulous consideration of cryptocurrency-linked investment products, particularly those linked to digital currencies like XRP, which has faced previous legal and regulatory scrutiny.
At the same time, ProShares has revised the expected launch date for its futures-based XRP ETFs to May 14, correcting earlier reports that suggested an April 30 rollout. As we mentioned in our earlier article, the CME Group, one of the largest derivatives marketplaces in the world, has scheduled the official launch of its XRP futures contracts for May 19.
Today, XRP is valued at $2.23, having dropped 2.40% over the past 24 hours and 2.67% over the week. The trading volume has declined by 6.46% to $2.95 billion. Some analysts believe that XRP can reach $3 in the future, driven by institutional adoption and new product launches in the financial industry.