The cryptocurrency landscape is rapidly evolving, with XRP-focused exchange-traded funds (ETFs) emerging as the latest innovation capturing investor attention. Recent developments indicate a growing institutional interest in offering regulated investment vehicles centered on XRP, the fourth-largest cryptocurrency by market capitalization. Franklin Templeton‘s recent filing adds to the increasing number of asset managers seeking SEC approval for XRP ETFs. Notable firms such as Grayscale, Bitwise, 21Shares, Canary Capital, and WisdomTree have also submitted applications.
Franklin Templeton’s Ambitious Move
On March 11, 2025, Franklin Templeton, a global asset manager overseeing $1.53 trillion in assets, filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch the Franklin XRP Trust. This proposed ETF aims to provide investors with direct exposure to XRP, trading on the CBOE BZX Exchange. Coinbase Custody plans to serve as the fund’s custodian, securing XRP holdings, while Coinbase takes on the role of prime broker. The fund calculates its net asset value using the CME CF XRP Reference Rate, a trusted benchmark in the crypto industry.
Volatility Shares’ Diverse ETF Proposals
Adding to the momentum, Volatility Shares has filed for three distinct XRP ETFs:
- Spot XRP ETF: Tracks the price of XRP directly.
- 2x Leveraged XRP ETF: Seeks to amplify daily price movements of XRP by a factor of two.
- Inverse -1x XRP ETF: Allows investors to bet against XRP’s price, reflecting the inverse of its daily performance.
These innovative products cater to a wide range of investment strategies, from bullish to bearish outlooks on XRP.
Brazil’s Pioneering Approval
Internationally, Brazil has taken a significant step by approving the world’s first spot XRP ETF. Managed by Hashdex, the Hashdex Nasdaq XRP Index Fund offers investors regulated access to XRP through traditional financial markets. This approval underscores Brazil’s commitment to embracing cryptocurrency innovations and may influence other regulatory bodies worldwide.
Market Implications and Investor Sentiment
The flurry of XRP ETF filings has sparked optimism among investors. Analysts at JPMorgan predict that an approved XRP ETF could attract up to $8 billion in investor inflows within its first year, mirroring the impact of Bitcoin and Ethereum ETFs. On prediction markets like Polymarket, traders currently assign a 77% chance of a spot XRP ETF receiving approval in the U.S. this year.
The SEC’s acknowledgment of multiple XRP ETF filings initiates a 240-day review period, with decisions expected by mid-October 2025. The potential approval of these ETFs could significantly impact the cryptocurrency market by providing institutional investors with regulated avenues to gain exposure to XRP, enhancing liquidity, and potentially driving the asset’s value.
The surge in XRP ETF proposals reflects a broader trend of integrating cryptocurrencies into mainstream financial products. As regulatory bodies deliberate on these applications, the potential approval of XRP ETFs could mark a pivotal moment for both XRP and the broader digital asset market, offering investors new opportunities to participate in the evolving financial landscape.
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