Franklin Templeton has announced its filing to launch an exchange-traded fund (ETF) based on Ripple's XRP, joining other players in the competitive race to create XRP-based ETFs.
Franklin Templeton's New Application
Franklin Templeton has filed to launch an ETF tracking the spot price of XRP minus fees. The ETF shares will trade on the Cboe BZX exchange, with Coinbase serving as the custodian. ETF holders will not receive benefits from XRP-related forks or airdrops.
The XRP ETF Race
Besides Franklin Templeton, companies such as Bitwise and Canary Capital are also in the race to launch XRP-based ETFs. The U.S. Securities and Exchange Commission (SEC) has acknowledged proposals from these companies and is in the process of making approval decisions. Bloomberg analysts estimate a 65% chance of approval for XRP ETFs.
Impact of Ripple's Lawsuit
The legal battle between Ripple Labs and the SEC appears to be nearing resolution. According to FOX Business journalist Eleanor Terrett, this may significantly impact the decision on XRP ETFs. If legal hurdles are cleared, the launch of XRP ETFs could soon become a reality.
With the potential resolution of the Ripple lawsuit, the likelihood of XRP ETFs being approved is increasing. Franklin Templeton's involvement underscores the significance of achieving such approval.
