- Franklin Templeton has entered the XRP ETF race, filing with the SEC to launch the Franklin Trust, becoming the largest asset manager to do so.
- This move follows a surge in institutional interest in altcoin ETFs, with major players like Bitwise, Grayscale, and WisdomTree also filing for similar funds.
- The SEC continues to review numerous crypto ETF proposals, with approval projections for altcoins like Dogecoin (75%) and Solana (70%) indicating strong market confidence.
Franklin Templeton has officially entered the arena. The asset management giant filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) on Tuesday, aiming to launch the Franklin Trust. With this move, Franklin Templeton becomes the largest asset manager to file for a spot in XRP ETF, following a wave of altcoin ETF applications from industry players such as Bitwise, Grayscale, and WisdomTree.
Under the previous Trump administration, crypto-friendly policies fueled a surge in ETF applications beyond Bitcoin and Ethereum. Now, this momentum continues, with institutional interest in altcoins reaching new heights.
VanEck made headlines on Monday by registering in Delaware for what is believed to be the first-ever Avalanche (AVAX) ETF. Meanwhile, Grayscale recently filed for a spot Polkadot (DOT) fund, and just last week, Canary Capital submitted an S-1 registration for the right to launch an Axelar (AXL) ETF. These filings underscore a growing demand for diversified crypto investment vehicles beyond the dominant Bitcoin and Ethereum ETFs.
The SEC remains active in reviewing these proposals. On Tuesday, the agency acknowledged filings for Grayscale’s Hedera (HBAR) ETF and Bitwise’s Dogecoin (DOGE) ETF. However, decisions on several proposals including Grayscale’s XRP and Dogecoin ETFs, as well as Canary Capital’s Litecoin (LTC), Solana (SOL), and XRP ETFs have been delayed. VanEck’s Solana ETF has also been pushed back for further review.
Dogecoin Solana XRP ETFs Strong Approval Odds
One notable development is the Cboe BZX Exchange’s recent proposal to add staking to Fidelity’s Ethereum ETF, a move that could introduce new dimensions to institutional crypto investments.
ETF Store President Nate Geraci commented on the SEC’s latest delays, stating on X (formerly Twitter), “No surprise… will just take some time. New SEC Chairman not even in place yet.” His remark reflects the ongoing regulatory uncertainty surrounding crypto ETFs, though many remain optimistic about eventual approvals.
Bloomberg ETF analysts have assessed the likelihood of upcoming approvals, giving Litecoin ETFs the highest chance at 90%, followed by Dogecoin (75%), Solana (70%), and XRP (65%). These projections indicate strong market confidence in further altcoin ETF approvals, though regulatory scrutiny remains a key factor.
Altcoin ETFs Gain Momentum as Institutional Interest Grows
Since the SEC’s landmark approvals of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July, institutional interest has surged. The latest reports show that institutional ownership of spot Ethereum ETFs jumped from 4.8% to 14.5% last quarter, while spot Bitcoin ETF ownership dipped slightly from 22.3% to 21.5%.
To navigate the evolving regulatory landscape, the SEC has formed a new crypto task force, led by Republican SEC Commissioner Hester Peirce. The group is tasked with defining which digital assets qualify as securities, a debate that could shape the future of the crypto investment space.
As the altcoin ETF race intensifies, investors and market watchers eagerly await the SEC’s next moves. With heavyweights like Franklin Templeton entering the fray, the landscape for crypto ETFs is poised for significant transformation in the months ahead.
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