Franklin Templeton Debuts XRP ETF (XRPZ) as Sector Sees Fresh Inflows

Franklin Templeton, an asset management company, has created an exchange-traded fund tracking the XRP coin on the NYSE Arca...

Quick overview

  • Franklin Templeton has launched an ETF tracking the XRP coin on NYSE Arca following regulatory approvals.
  • The ETF debuted alongside Grayscale's GXRP and has seen significant inflows, indicating strong investor interest.
  • XRP and other digital assets are recovering after a recent market downturn, with Bitcoin and Ethereum also showing signs of recovery.
  • The launch of these ETFs marks a significant step in providing regulated access to digital assets for both institutional and retail investors.

Franklin Templeton, an asset management company, has created an exchange-traded fund tracking the XRP coin on the NYSE Arca, after regulatory approvals that have cleared the way for other crypto investment vehicles.

Its first day of trading lined up with the debut of the Grayscale XRP Trust ETF (GXRP), coming on the heels of similar launches from Bitwise Asset Management and Canary Capital.

On Monday, XRP and other prominent digital assets regained ground lost in the previous six weeks as crypto markets fell. Bitcoin is still recovering from a drop to $82,175–its lowest level since early April–and Ethereum is recovering after falling to a four-month low around $2,700 last week.

Franklin Templeton’s new fund replicates the performance of XRP as tracked by the New York Variant of the CME CF XRP-Dollar Reference Rate.

Institutional-Grade Access and Transparency for XRP Investors

According to David Mann, head of ETF product and capital markets at Franklin Templeton, XRPZ provides investors with an easy, regulated way to access a digital asset that plays a fundamental role in global settlement infrastructure, while benefiting from the transparency and oversight of an ETF.

Within a diverse digital portfolio, we see XRP as a fundamental building block. XRPZ offers regulated custody, daily transparency, and liquidity without the operational complexities of holding the token directly, stated Roger Bayston, head of digital assets at Franklin Templeton.

The ETF format enables institutional and ordinary investors to get XRP exposure via brokerage accounts, with daily pricing and SEC regulation.

Bitwise CEO Hunter Horsley stated on Monday that the asset management company’s XRP ETF saw around $118 million in inflows last week.

Grayscale and Canary Accelerate Altcoin ETF Expansion

Meanwhile, Grayscale has also listed its XRP and Dogecoin ETFs on the same market. The new ETFs will be traded as GXRP and GDOG, respectively.

The uplisting indicates that the funds already existed but were not pure spot ETFs. The firm’s altcoin funds were transformed into true spot ETFs, just as the Grayscale Bitcoin Trust and Grayscale Ethereum Trust had done before.

Canary, the fund issuer, announced an XRP ETF earlier this month. The fund got off to a fast start, outperforming analysts’ expectations with initial inflows of $17 million in less than 30 minutes and $58 million for the day, the biggest of any ETF this year.

XRP following the resolution of SEC legal issues

The XRP ETF debuted nearly five years after the US Securities and Exchange Commission initiated a case against Ripple and its management. The US regulator eventually dropped the action in March, under new leadership and administration, and the issue was officially settled in August for $125 million.

Franklin Templeton’s XRP issuance needs SEC approval to start trading on the NYSE Arca.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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