Franklin Templeton Files for XRP ETF
Franklin Templeton's XRP ETF Filing
Franklin Templeton, a prominent asset management firm, has submitted an S-1 registration form to the Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) focused on XRP. This follows the February registration of the Franklin XRP Trust in Delaware. The filing is available on the SEC's EDGAR database: S-1 registration form.
Key Details of the Proposed XRP ETF
- Custodian: Coinbase Custody
- Prime Broker: Coinbase
- Trustee: CSC Delaware Trust Company
- Exchange: CBOE BZX Exchange
- Pricing: Shares offered continuously at net asset value (NAV), with creation and redemption of units limited to authorized participants.
- NAV Calculation: CME CF XRP-Dollar Reference Rate
- Sponsor: Franklin Holdings, covering operating expenses in exchange for a sponsor's fee.
- Structure: Emerging growth company under the JOBS Act.
This move positions Franklin Templeton alongside other asset managers such as Bitwise, 21Shares, Canary Capital, Grayscale, and WisdomTree, all vying for SEC approval of XRP ETFs. The proposed fund aims to provide investors with direct exposure to XRP, currently the fourth-largest cryptocurrency by market capitalization. The ticker symbol remains to be determined.
SEC Review and Implications
The SEC's review process typically takes 240 days. While a final decision is anticipated within that timeframe for many applications, there's no guarantee. This filing comes amidst the SEC's ongoing legal case with Ripple Labs concerning XRP's classification as a security. The SEC's acceptance of multiple XRP ETF applications, including Grayscale's filing in February, indicates a growing willingness to assess these products.
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