Franklin Templeton files for XRP ETF as SEC delays decision on Canary and Grayscale filings
- Franklin Templeton filed an S-1 with the SEC seeking approval to launch an XRP ETF.
- The SEC has delayed its decision on XRP ETF applications from Canary Capital and Grayscale.
- XRP is up 6% in the past 24 hours as the crypto market attempts a recovery.
Franklin Templeton filed an S-1 with the Securities & Exchange Commission (SEC) on Tuesday to launch the Franklin XRP Trust. Following its filing, the SEC announced it would delay its decision on XRP ETF applications from Canary Capital and Grayscale.
Franklin Templeton seeks XRP ETF approval from SEC
Franklin Templeton submitted an S-1 registration with the SEC seeking permission to launch an XRP ETF. The proposed ETF will trade on the Cboe BZX Exchange and utilize Coinbase Custody as the custodian for its XRP holdings.
"The Fund seeks to reflect generally the performance of the price of XRP. The Fund seeks to reflect such performance before payment of the Fund's expenses," the filing states.
With its filing, Franklin joins Bitwise, 21Shares, Grayscale, WisdomTree, Canary Capital and CoinShares in waiting for a potential regulatory greenlight for their XRP ETF applications.
The SEC had earlier acknowledged XRP ETF submissions from these firms, indicating it may also receive Franklin's application. After acknowledging a filing, the regulator has a 240-day window to either approve or deny the product.
Bloomberg analysts Eric Balchunas and James Seyffart have predicted that XRP ETFs have a 65% chance of getting approval from the SEC in 2025.
Meanwhile, the SEC announced on Tuesday that it would delay its decision on the Canary XRP ETF and the Grayscale XRP ETF.
"The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change, as modified by Amendment No. 1, so that it has sufficient time to consider the proposed rule change and the issues raised therein," wrote SEC Assistant Secretary Sherry Haywood.
"Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates May 21, 2025, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change," she added.
XRP joined the crypto market in marking a recovery, up 6% in the past 24 hours and changing hands around $2.20 at the time of writing.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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