Franklin Templeton Files for XRP ETF
Asset management giant Franklin Templeton has filed for an XRP ETF, joining other key players in the crypto investment space such as Bitwise and Canary Capital.
Optimism Surrounding XRP ETF Approval
- With the Ripple lawsuit nearing conclusion, there is optimism that the SEC could approve XRP ETFs.
- The uncertainty surrounding XRP’s status as a security has hindered its adoption by mainstream financial institutions.
The Proposed Franklin Templeton XRP ETF
The Franklin Templeton ETF is planned to be listed on the Cboe BZX exchange, with Coinbase acting as the custodian for the fund’s assets.
Investors in the ETF will be exposed to XRP’s price movements but will not benefit from forks or airdrops associated with the XRP blockchain.
Likelihood of XRP ETF Approval
The SEC has acknowledged XRP ETF proposals from various contenders, including 21Shares, WisdomTree, CoinShares, Canary Capital, and Grayscale Investments.
The potential resolution of the Ripple Labs legal battle with the SEC could be a key factor in the approval of XRP ETFs.
Analysts’ Views on XRP ETF Approval
Bloomberg previously estimated a 65% chance of XRP ETF approval in February, but recent legal developments could impact this figure.
The involvement of Franklin Templeton indicates growing institutional belief in potential SEC approval for XRP ETFs.
If the Ripple lawsuit is resolved positively, XRP ETFs could move from speculation to reality.
Impact of Regulatory Clarity on XRP
The resolution of the security status question surrounding XRP could not only pave the way for ETF approvals but also boost investor confidence and price momentum for the cryptocurrency.
