Asset management firm Franklin Templeton has filed for an exchange-traded fund (ETF) that aims to track the spot price of XRP, reflecting an increasing interest in cryptocurrencies beyond Bitcoin among institutional investors.
The filing outlines the structure, risks, and regulatory considerations of the ETF, including the volatile nature of cryptocurrencies, potential regulatory challenges, and custody arrangements, reflecting increasing institutional interest in cryptocurrencies beyond Bitcoin.
This strategic move follows Franklin Templeton’s earlier filing for an ETF to track the spot price of Solana, signalling a broader trend within the asset management sector towards embracing digital assets. The XRP ETF aims to enhance accessibility for traditional investors on the Cboe BZX Exchange.
Coinbase will serve as the custodian for the fund’s XRP holdings, highlighting the growing role of cryptocurrency exchanges within the institutional financial landscape. Franklin Templeton’s selection of Coinbase seeks to instil confidence in investors who may be hesitant due to the risks associated with digital assets.
Notably, The U.S. government’s plan to include XRP in a new strategic reserve aligns with its efforts to give digital assets a more prominent role in its economic strategy. This move would further solidify XRP’s place in the financial ecosystem. The filing also coincides with growing interest in XRP from U.S. policymakers, including signals from the Trump administration of this plan.
Due to this, investors are looking to diversify into digital assets beyond Bitcoin, and there is a growing interest in alternative cryptocurrencies. For example, earlier this year, The United States Securities and Exchange Commission (SEC) officially acknowledged NYSE Arca’s filing for a spot Cardano exchange-traded fund (ETF) on Grayscale Cardano Trust. In a notice dated February 24, the regulator confirmed that it has begun reviewing the proposal to list and trade the Grayscale Cardano Trust shares under NYSE Arca Rule 8.201-E.
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