Key Takeaways
- Franklin filed an S-1 with the SEC to launch an ETF focused on XRP.
- The ETF would hold spot XRP, using Coinbase Custody as the fund’s custodian.
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Franklin Templeton has filed an S-1 registration form with the SEC to launch an XRP ETF. The proposed fund, expected to trade on the CBOE BZX Exchange, aims to provide investors exposure to XRP, currently the fourth largest crypto asset by market cap.
The ETF’s ticker symbol has yet to be determined, according to a Tuesday filing.
Coinbase Custody would serve as the custodian for the fund’s XRP holdings, while Coinbase would act as the prime broker. CSC Delaware Trust Company would serve as trustee.
The shares would be offered continuously at net asset value, with only authorized participants able to create or redeem creation units. The fund would use the CME CF XRP-Dollar Reference Rate to determine its net asset value.
Franklin Holdings will sponsor the fund and has agreed to pay most ordinary operating expenses in exchange for a sponsor’s fee. The trust is structured as an emerging growth company under the JOBS Act.
The filing warns of various risks, including XRP’s price volatility, regulatory uncertainty, potential security breaches, and tax treatment complexities. The fund would not acquire any forked assets or “incidental rights” from the XRP blockchain.
This marks the latest attempt to launch a spot crypto ETF following recent approvals for spot Bitcoin ETFs. The SEC will need to review and approve the filing before the fund can begin trading.
In February, the CBOE BZX Exchange filed to list various spot XRP ETFs including those from Bitwise, 21Shares, and Canary Capital, signaling increased interest following previous Bitcoin and Ethereum ETF approvals.
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