Franklin Templeton is preparing to launch a spot XRP-ETF and plans to store assets through Coinbase Custody. This follows from the final version of the document, which is already under review by the SEC.
According to the company, which manages about $1.6 trillion in capital, trading may start on November 18 if the regulator does not delay approval. This ETF will become one of the first products in the US directly tied to XRP. It is currently going through the same process as other crypto fund launch applications.
Trading is expected to take place on the Cboe BZX platform. Investors will get access to XRP — the cryptocurrency ranked fourth by market capitalization. The security of the tokens will be ensured by Coinbase Custody. Separately, Coinbase itself will handle the technical execution of trades as a prime broker.
The trustee functions will be handled by CSC Delaware Trust Company. Franklin Templeton also clarified that the issuance and redemption of fund shares will occur at net asset value through authorized participants, as in other spot crypto funds.
What is stated in the fund’s documents
The fund’s net asset value will be calculated based on the CME CF XRP-Dollar Reference Rate — one of the industry’s main benchmarks used for valuing digital assets in many products.
The documents also state that Franklin Holdings, which acts as the fund’s sponsor, will cover most of the operating expenses. In return, it will receive a sponsor fee. The trust itself is registered as an emerging company under the JOBS Act — this gives it certain reporting relief at the start.
SEC accepted the fund’s documents shortly after other applications to create an XRP-ETF, including the one submitted by Grayscale on February 14. From that moment, the 240-day review period began. This was the first official case when the regulator gave a formal response to proposals to launch an investment product directly linked to XRP, despite the ongoing litigation of the SEC against Ripple Labs regarding the regulation of the token itself.
Institutional products based on XRP are gaining momentum
Interest in XRP funds began to grow rapidly. Just a couple of days after Franklin Templeton‘s announcement, Bitwise announced its own product — trading is set to begin on November 20. They clarified that they are targeting institutional investors: family offices, hedge funds, and other investors who need regulated and transparent access to the asset.
See also: ETH drops below $3,000 — is the bull market over?
Recent market successes of XRP also contributed to the growing interest. For example, the Canary Capital XRPC product raised about $58 million on its first day of trading. Another fund based on XRP attracted $243 million at launch — more than twice as much as the flagship bitcoin ETF from BlackRock, which debuted with $111.7 million.
What is happening in the market after the ETF news
Despite the launch of new products, the price of XRP went into correction. However, analysts cited by the largest market trackers note that the decline occurred against the backdrop of overall crypto market weakness. Among the commentators are E. Grag Crypto, Javon Marks and Ripple Bull Winkle. They all agree that the recent price fluctuations are not related to changes in ETF trading volumes.
In their public assessments, they relied on historical charts and past market behavior, but found no direct evidence that the pullback was caused specifically by the activity of new funds.
