Franklin Templeton Partners with Coinbase Custody to Launch Game-Changing Spot XRP ETF

Wall Street meets crypto—again. Franklin Templeton just tapped Coinbase Custody as its back-end for a spot XRP ETF, signaling institutional adoption isn’t slowing down.

Why it matters: After Bitcoin and Ethereum ETFs, this move targets Ripple’s embattled XRP—proving even 'toxic' assets get love when fees are on the table.

The setup: Coinbase’s custody arm handles security, while Franklin Templeton markets the fund to its army of boomer investors. Classic 'old money meets new tech' play.

Bottom line: Banks still hate crypto—until they can charge 1.5% annually to hold it for you.

Key Disclosures in the Filing

The net asset value of the fund WOULD be based on the CME CF XRP -Dollar Reference Rate, a standard asset price index that is typically applied across financial products in the digital-asset sector. In the framework described in the filing, the sponsor of the fund, Franklin Holdings, has consented to pay the majority of typical operating expenses in exchange with a sponsor fee. The trust is classified as an emerging growth company under the JOBS Act, which provides it with some reporting accommodations in its initial years of operation.

The SEC acknowledged the filing within days of multiple other XRP ETF submissions, including Grayscale’s February 14 application, which initiated a 240-day review process. The acknowledgment marked the first time the regulator has formally responded to proposals involving investment products that directly hold XRP, even as the SEC continues its separate litigation against Ripple Labs concerning XRP’s regulatory classification.

Institutional XRP Products Begin to Expand

There has been an increase in interest in XRP investment vehicles. Bitwise, just under two days after Franklin Templeton indicated that it would launch, began to announce that it would start trading its own spot XRP fund on November 20. The company claimed that its product is targeted at institutional investors, including hedge funds and family offices, who require a regulated investment in the asset.

The new investment products on XRP have been given a boost by their recent market performance. Furthermore, the Canary Capital XRPC product generated approximately $58 million during its initial trading on the first day. An XRP-based product raised $243 million in its initial launch, outperforming the $111.7 million raised by the first launch of the BlackRock Bitcoin ETF.

Market Observations Following ETF Developments

Although XRP has suffered a pullback following these product launches, analysts quoted by market trackers have noted that the downtrend occurred during an overall weak market period. In commentary, analysts, including E. Grag Crypto, Javon Marks, and Ripple Bull Winkle, assert that the recent price action was not in line with changes in ETF trading volumes.

Their publicly issued evaluations cited historical price patterns and previous market responses, but failed to attribute the retracement to ETF-related activity.

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