Franklin Templeton applied for the XRP ETF and joined Bitwise and Canary Capital. The conclusion of the Ripple lawsuit is that the SEC can approve the XRP ETF. The issue of XRP’s status as security has overturned the recruitment by mainstream financial institutions.
Asset management giant Franklin Templeton filed to provide exchange industry funds (ETFs) that participate in the competitive sector, including Bitwise, Canary capital and several other notable players in the crypto investment sector, with the exception of XRP spot prices and related fees.
The move shows that despite years of regulatory uncertainty surrounding cryptocurrencies, it will increase trust among traditional financial institutions in the potential of XRP-based products.
Proposed Franklin Templeton XRP ETF
The proposed Franklin Templeton ETF is planning to trade with leading US-based crypto exchanges Coinbase and Coinbase, and serves as the manager of the fund’s underlying assets.
Investors who hold shares in ETFs are exposed to XRP price movements, but are not entitled to the benefits of forks and airdrops tied to the XRP blockchain. This structure is consistent with similar offerings from competitors. This is because companies are competing to bring their investment tools that are rippled up in the market amid changing regulatory environment.
What are the possible approvals for the XRP ETF?
The Securities and Exchange Commission (SEC) has noted this growing interest and has formally recognized XRP ETF proposals from other candidates such as 21Shares, Wisdomtree, Coinshares, Canary Capital and Grayscale Investments.
The SEC continues to evaluate these filings, but reflecting its careful approach to approval of such products, it has already delayed the Grayscale’s proposed decision on the XRP ETF until May.
Adding a plot to the situation is a potential solution to Ripple Labs’ long-standing legal battle with the SEC. This is a case that is even greater than the XRP regulations. This development could prove to be crucial as it is an important barrier to XRP ETF approval and creates uncertainty that keeps some investors on the sidelines.
The SEC’s recent litigation layoffs against other crypto companies further promote optimism that the resolution can clear the path of Ripple-based products.
Analysts are squeezing the possibility of approval, with Bloomberg estimated the 65% chance of an XRP ETF in February, ahead of the latest legal developments. In comparison, Litecoin, Solana, and even Dogecoin were considered candidates of the time.
The outlook could be changing as Ripple’s lawsuit is now approaching resolution and Franklin Templeton is an entry into the dispute. The involvement of heavyweights like Franklin Templeton suggests a growing institutional belief that the SEC can greenlight these products, especially when regulatory clarity emerges.
If the Ripple lawsuit favorably concludes, this long-standing removal of the hurdle could potentially turn the XRP ETF from a speculative bet to a concrete reality.
For years, the issue of XRP’s status as security has overshadowed the recruitment by mainstream financial institutions. The resolution not only paves the way for ETF approval, but may also spark a more sustained price momentum for XRP as investors gain confidence in their legal status.
