- Franklin Templeton files for an XRP ETF, joining 16 other firms in the race.
- This marks the first traditional finance giant to seek an XRP ETF.
- Analysts predict a 65% approval chance, despite the SEC’s previous delays.
The race for an XRP is becoming a hotly-contested prize and a major player just joined the fray. Franklin Templeton, a TradFi giant with over $1.5 trillion under management, has officially filed for an XRP ETF with the SEC, as disclosed by Nate Geraci, president of The ETF Store. This marks the 17th filing for the crypto ETF, with big names like Bitwise, Grayscale, Canary Capital and WisdomTree already in the mix.
The Franklin XRP Trust, as it’s called, aims to let investors trade the token similar to traditional stocks on the Cboe BZX Exchange. While the ticker symbol for the ETF has yet to be determined, Coinbase Custody Trust Company will serve as the custodian of the fund’s assets. Additionally, NAV calculated daily using CF Benchmarks Index, with real-time updates every 15 seconds.
The filing is seen as a big deal for the token for a couple of reasons. For the first time a traditional finance heavyweight like Franklin Templeton is taking a chance on altcoins beyond the established ones like BTC or ETH. Second, it shows growing confidence in the altcoin, despite the SEC’s ongoing scrutiny.
Remember, the regulator has been dragging its feet on approving any XRP ETF, even extending review to May 21. But with FT joining the applicants list, analysts are giving this one a decent 65% chance of getting the green light in 2025.
XRP Price Dynamics Post ETF Approval
Now, here’s the catch: while the approval of Bitcoin and Ethereum ETFs triggered massive inflows (we’re talking $107 billion for Bitcoin!), JPMorgan analysts think XRP might see a more modest $4.3 to $8.4 billion during their first 6 to 12 months on the market.
They’re suggesting there’s “limited demand” for altcoin ETFs compared to the big two in their first year. But who knows? Maybe Franklin Templeton’s entry might change that.
Meawhile, XRP’s daily active addresses have surged to over 200K, indicating a notable rise in network activity. This increase suggests that more users are engaging with the token.