Franklin Templeton and Grayscale Investments have filed amended applications with the Securities and Exchange Commission for their proposed XRP exchange-traded funds. These amendments are designed to remove procedural barriers that previously caused delays in approval timelines. The adjustments signal that these firms are preparing for potential product launches as institutional interest in cryptocurrency investment vehicles continues to expand beyond Bitcoin and Ethereum.
Key Developments in ETF Filings
- •Franklin Templeton has eliminated the 8(a) regulatory provision from its S-1 registration. This clause has the potential to postpone ETF effectiveness pending SEC review.
- •Grayscale submitted its second amendment, officially designating Edward McGee as chief financial officer and Davis Polk & Wardwell LLP as legal counsel for the XRP Trust.
- •Several other asset managers, including Canary Funds and Bitwise, have also removed similar delaying amendments from their filings. This indicates a coordinated effort in industry preparation.
Franklin Templeton Streamlines Filing Process
Franklin Templeton has revised its S-1 registration statement by removing the 8(a) provision. This regulatory clause permits the SEC to suspend the effectiveness of an ETF filing during its review period. This change aligns the firm's application with the approval timelines observed in previous cryptocurrency ETF launches. Market analysts have suggested November as a potential launch window, based on historical SEC processing patterns.
The asset management firm currently operates the EZBC, a Bitcoin spot ETF, and EZET, an Ethereum spot ETF. These products attracted over $500 million in institutional capital during their initial quarter of operation. Franklin Templeton manages approximately $1.5 trillion in global assets, a figure that represents more than 40 times the assets under management reported by Grayscale.
Grayscale Advances Trust Structure
Grayscale filed Amendment No. 2 to its Form S-1 on November 3rd, formalizing leadership appointments and legal representation for its proposed Grayscale XRP Trust. The filing officially named Edward McGee as CFO and designated Davis Polk & Wardwell LLP as legal counsel.
The firm had previously converted its GBTC Bitcoin trust and ETHE Ethereum trust into spot ETFs following SEC approval in January 2024.
Grayscale manages roughly $38 billion in digital asset products. Davis Polk & Wardwell has a history of representing the firm in previous cryptocurrency ETF applications, which provides consistency in their regulatory strategy.
The XRP Trust will operate under the same frameworks that Grayscale developed through its earlier product conversions. The firm has established protocols for navigating SEC review requirements, which include detailed custody arrangements and market surveillance systems.
Regulatory Landscape and Industry Coordination
The amended filings reflect simultaneous actions taken by multiple asset managers. Canary Funds and Bitwise recently modified their applications to eliminate delaying provisions, suggesting a broader industry-wide preparation for potential approval decisions.
SEC review processes meticulously examine custody structures, market surveillance mechanisms, and compliance frameworks for digital asset products. These components are fundamental to the regulatory oversight of cryptocurrency markets. The approval decisions for these XRP ETFs will significantly impact institutional access to XRP investment vehicles and will establish important regulatory precedents for altcoin-based ETFs beyond Bitcoin and Ethereum.
The coordinated filing amendments indicate that asset managers anticipate a resolution on XRP ETF applications in the near term. Such approvals would serve to expand the range of cryptocurrency products available to institutional investors through regulated exchanges.
Understanding Key Terms
An exchange-traded fund (ETF) is an investment vehicle that trades on stock exchanges and tracks the performance of an underlying asset. Spot ETFs hold the actual cryptocurrency rather than derivative contracts. The S-1 form is a registration statement that is required by the SEC for companies planning to issue securities to the public. The 8(a) provision is a regulatory mechanism that allows regulators to suspend the effectiveness of a registration statement during review periods.
A trust structure, such as Grayscale's proposed XRP Trust, holds assets on behalf of investors and issues shares that represent ownership stakes. Asset managers utilize trusts as vehicles to convert their holdings into publicly traded products. Custody structures refer to the systems that are used to safeguard and store cryptocurrency assets, which is a critical component of SEC oversight for digital asset products.
Closing Thoughts
Franklin Templeton and Grayscale have made modifications to their XRP ETF applications to remove procedural delays, positioning their products for potential SEC approval. These amendments follow established patterns observed during the Bitcoin and Ethereum ETF launches and reflect broader industry preparation for regulatory decisions concerning alternative cryptocurrency investment vehicles.