Franklin Templeton’s XRP ETF Awaits SEC Approval
- Franklin Templeton’s XRP ETF listed but awaits SEC approval.
- Market expects potential liquidity boost upon approval.
- Institutional interest in XRP grows with the ETF listing.
Franklin Templeton’s spot XRP ETF, named Franklin XRP Trust and tickered XRPZ, appeared on the DTCC list, signaling launch preparations but needing SEC approval for trading.
The ETF’s potential approval could influence institutional interest in XRP, reflecting historic trends seen with Bitcoin BTC +0.49% and Ethereum ETH +0.59% , with market reactions showing cautious optimism.
Franklin Templeton’s XRP ETF
The Franklin Templeton spot XRP ETF has appeared on the Depository Trust & Clearing Corporation’s list, indicating preparations for a potential launch. However, trading is still pending approval from the U.S. Securities and Exchange Commission.
Franklin Templeton, one of the largest asset managers, sponsors the ETF while Coinbase Trust serves as the custodian. The ETF titled “Franklin XRP Trust” with ticker XRPZ, is designed to track XRP’s price performance.
Growing Institutional Interest
The ETF’s listing has sparked interest in XRP, reflected by potential institutional participation from firms like Franklin Templeton. Industry players are preparing for changes stemming from a new investment vehicle in the market.
If approved, the ETF could significantly influence XRP’s valuation through increased market liquidity and accessibility. Past ETF approvals for cryptocurrencies like Bitcoin have historically intensified market activity and liquidity.
Franklin Templeton submitted an amended Form S-1 registration statement for the XRP fund…with shortened ‘8(a)’ language, allowing automatic effectiveness after 20 days unless the SEC intervenes. — James Seyffart, ETF Analyst, Bloomberg
Market Impact and Predictions
The crypto sector closely monitors SEC actions, knowing that ETF approvals often lead to enhanced market liquidity and increased institutional investments.
Analysts, citing past trends, predict that an XRP ETF could spur substantial inflows, possibly exceeding $5 billion soon after approval. The speed of capital deployment in similar ETFs suggests strong market interest.
