Asset management giant Franklin Templeton, overseeing $1.5 trillion in assets, has entered the race to offer cryptocurrency exchange-traded funds (ETFs).
The firm has formally applied to the U.S. Securities & Exchange Commission (SEC) to introduce an ETF designed to track the price movements of XRP, currently the fourth-largest cryptocurrency based on market capitalization.
Franklin Templeton Files for XRP ETF
On Tuesday, Franklin Templeton, a significant player in financial services, submitted an S-1 registration document to the SEC, signaling their intention to launch the “Franklin XRP ETF.”
According to the filing, the ETF’s shares are structured to mirror the price performance of XRP. The shares are intended to be listed and traded on the Cboe BZX Exchange.
The official filing states that the proposed ETF aims to provide investors with a user-friendly investment avenue that closely resembles investing in XRP itself.
ETF to Track XRP Price Passively
This would offer an alternative to the complexities associated with directly acquiring, holding, and trading XRP on peer-to-peer platforms, or through various digital asset exchanges.
Coinbase Custody Trust Company, a New York-based entity specializing in providing secure cold storage for cryptocurrency assets on behalf of institutional investors, is slated to serve as the custodian for the fund’s XRP holdings.
As of the latest data, XRP is trading at $2.23, showing a gain of 2.05% over the preceding 24-hour period.
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