Franklin Templeton launched this Monday an XRP-backed ETF on the NYSE Arca. This event marks a significant milestone in the integration of altcoins into regulated markets. While attention is focused on Bitcoin ETFs, this initiative signals an expansion of institutional interest. After the litigation between Ripple and the SEC, this launch could pave the way for other cryptos previously sidelined by traditional markets.
In Brief
- •Franklin Templeton launches an XRP-backed ETF (XRPZ) on NYSE Arca, marking an important step for altcoins.
- •On the first day alone, more than 768,000 shares of XRPZ were traded, reflecting notable market interest.
- •SEC approval for XRPZ could pave the way for other alternative crypto-based ETFs.
- •The entry of XRP into a regulated framework strengthens its legitimacy with traditional investors and repositions Ripple on the institutional stage.
Franklin Templeton Enters XRP Arena With Regulated ETF
While the crypto fell below $2, Franklin Templeton officially launched this Monday, November 24, its XRP-backed ETF on NYSE Arca, under the ticker XRPZ. The announcement marks the arrival of a new traditional player in the regulated altcoin segment.
In a statement, David Mann, head of ETF products and capital markets at Franklin Templeton, declared: "XRPZ offers investors a convenient and regulated way to access a crypto that plays a fundamental role in global settlement infrastructure, with the transparency and oversight an ETF provides."
The stated goal is to provide an institutional entry point to XRP, within a framework compliant with U.S. financial market standards.
The launch of XRPZ comes amid a coordinated momentum around financial products linked to XRP. On the same day, Grayscale introduced its XRP Trust ETF (GXRP), while Bitwise and Canary Capital are also competing with their own vehicles. Although official capital inflow data for Franklin Templeton is not yet available, early activity indicators are revealing:
- •768,692 XRPZ shares were traded on NYSE Arca during the initial hours of trading, according to market data.
- •The XRP price surged 8.25% over 24 hours.
- •Bitwise reported approximately 118 million dollars in inflows for its XRP ETF in the previous week.
- •This launch follows other initiatives by Franklin Templeton, including products backed by Bitcoin, Ether, and a crypto index fund.
Putting these elements together, we witness the gradual institutionalization of XRP, which until now was still considered a controversial asset in the American crypto landscape.
From Ripple Lawsuit to Regulation: A Turning Point for XRP
The launch of XRPZ cannot be understood independently of the legal context surrounding Ripple for nearly five years. Indeed, this new ETF exposure comes just months after the conclusion of the litigation between Ripple and the SEC, initiated in December 2020.
Last March, the commission dropped the lawsuits under a new administration, and the case formally closed in August with a $125 million settlement, paving the way for XRP’s rehabilitation in the U.S. market. SEC approval of this ETF product, necessary for its listing on NYSE Arca, marks a turning point in the institutional perception of XRP as a legitimate asset.
This regulatory evolution appears to have been the catalyst for a strategic reconfiguration for several asset managers. While Franklin Templeton had already launched products indexed on Bitcoin and Ether, as well as a global crypto fund, the integration of XRP signals a desire to broaden the ETF scope to less consensual cryptos. Far from a trivial choice, this move could open the way for new ETFs based on alternative blockchains like Solana, Avalanche, or Stellar, pending regulatory clarification.
The arrival of Franklin Templeton’s ETF strengthens XRP’s legitimacy in traditional markets, reviving hope for a $4 return of XRP, a symbolic target for a crypto seeking rehabilitation after years of regulatory turmoil.