Franklin Templeton wins major approval for new XRP ETF
The financial giant’s cryptocurrency fund received the green light from NYSE Arca and is preparing to launch with competitive fees
Franklin Templeton has cleared a significant regulatory hurdle in its quest to offer cryptocurrency investments to mainstream investors. The investment management firm received formal approval from NYSE Arca to list its spot XRP exchange-traded fund, marking another milestone in the expanding world of digital asset investment products.
The approval process reaches completion
NYSE Arca officially certified the listing approval to the Securities and Exchange Commission, signaling that Franklin Templeton’s fund has satisfied all necessary exchange requirements. The Franklin XRP Trust is now positioned for an imminent market debut after navigating the complex regulatory framework governing cryptocurrency investment vehicles.
The fund will operate under the ticker symbol XRPZ when it begins trading on the exchange. Franklin Templeton has structured the product with an annual sponsor fee of 0.19% calculated on net asset value, positioning it competitively within the emerging cryptocurrency ETF landscape.
An attractive fee structure for early investors
In a strategic move to attract initial capital, Franklin Templeton plans to implement a temporary fee waiver that could benefit early adopters significantly. The company intends to completely waive the sponsor fee on the first $5 billion in assets accumulated by the fund. This promotional period will extend through May 31, 2026, giving investors more than a year to participate without incurring management fees.
The fee waiver strategy demonstrates Franklin Templeton’s commitment to establishing a strong market presence in the cryptocurrency ETF space. By eliminating costs on substantial initial assets, the firm aims to differentiate itself from competitors and build momentum during the critical launch phase.
A crowded marketplace emerges
Franklin Templeton enters an increasingly competitive arena as multiple asset management firms rush to capitalize on investor demand for regulated XRP exposure. The company will join several other fund managers who have recently introduced similar products to American investors seeking cryptocurrency investments through traditional brokerage accounts.
Canary Capital and Bitwise Asset Management both launched their spot XRP ETFs earlier this month, establishing themselves as early movers in this specialized market segment. Their products have provided investors with alternatives to direct cryptocurrency ownership while maintaining the familiar structure of exchange-traded funds.
Grayscale, another prominent player in the cryptocurrency investment space, is preparing to introduce not one but two digital asset ETFs. The firm received final regulatory clearance to launch both its spot XRP and Dogecoin ETFs, with both products scheduled to begin trading tomorrow. This dual launch represents Grayscale’s continued expansion beyond its flagship Bitcoin holdings.
Understanding the investment vehicle
Exchange-traded funds tied to cryptocurrencies offer investors a regulated pathway to gain exposure to digital assets without the complexities of directly purchasing, storing and securing the underlying tokens. These products trade on traditional stock exchanges during regular market hours, providing liquidity and accessibility through standard brokerage accounts.
The spot ETF structure means the fund holds actual XRP tokens rather than derivative contracts, giving investors direct exposure to the cryptocurrency’s price movements. This approach differs from futures-based products that track contracts predicting future prices rather than current market values.
Market response remains positive
XRP maintained strong performance as news of fraaaa‘s approval circulated through financial markets. The cryptocurrency was trading above $2 at the time of the announcement, reflecting an increase of nearly 3% over the preceding 24-hour period according to CoinGecko data.
The positive price action suggests continued investor enthusiasm for XRP despite the increasing number of investment products entering the market. The cryptocurrency has demonstrated resilience throughout the ETF approval process, maintaining investor interest as regulatory clarity improves.
Franklin Templeton’s entry into the XRP ETF market represents the latest chapter in the mainstreaming of cryptocurrency investments. As more established financial institutions offer regulated digital asset products, the barriers between traditional finance and cryptocurrency continue to diminish.
Source: The Block
Disclaimer: This article is for informational purposes only and not financial advice. Always research before making investment decisions.
