Franklin Templeton Unveils Spot XRP ETF, Signaling Major Institutional Confidence in Crypto

Global asset management titan Franklin Templeton has officially launched its highly anticipated spot Ripple (XRP) Exchange Traded Fund (ETF), the Franklin XRP Trust (Ticker: XRPZ). This strategic move, announced on Monday, provides investors with a regulated and accessible gateway to XRP trading. It marks a significant entry by a venerable institution into an increasingly competitive market, positioning Franklin Templeton alongside major players like Bitwise, Grayscale, and Canary Capital.

Completing a Comprehensive Digital Asset Portfolio

The introduction of XRPZ solidifies Franklin Templeton’s robust cryptocurrency ETF product lineup. The firm’s digital asset offerings now encompass a diverse range, including the Bitcoin ETF (EZBC), Ethereum ETF (EZET), the new XRP ETF (XRPZ), and a broader diversified digital asset fund (EZPZ). This comprehensive suite empowers both traditional individual investors and institutional clients to seamlessly integrate a wider array of crypto assets into their portfolios through standard brokerage accounts, effectively bypassing the complexities and inherent risks associated with direct self-custody.

David Mann, Head of ETF Product & Capital Markets at Franklin Templeton, underscored XRP’s foundational role in a statement on Monday. “XRP plays a key underlying role in global settlement infrastructure,” Mann stated, highlighting the asset’s utility beyond mere speculative trading.

XRP’s Resurgence: From Regulatory Turmoil to Institutional Adoption

The launch of XRPZ comes five years after XRP faced significant regulatory headwinds. In late 2020, the U.S. Securities and Exchange Commission (SEC) initiated legal action against Ripple, alleging the illegal sale of “unregistered securities” since 2013. This landmark lawsuit led to XRP’s delisting from numerous major exchanges, severely impacting its liquidity and market confidence.

The protracted legal battle ultimately concluded in August 2025, with Ripple agreeing to a $125 million settlement without admitting any wrongdoing. Following the resolution of the lawsuit and the subsequent clarification of regulatory parameters, market confidence in XRP experienced a strong rebound. Franklin Templeton’s strategic entry into the XRP ETF space is a clear testament to this renewed confidence and illustrates how major institutional players are increasingly engaging with the crypto market through compliant and regulated investment vehicles.

Roger Bayston, Head of Digital Assets at Franklin Templeton, elaborated on the firm’s perspective: “Blockchain innovation is a powerful catalyst for rapid enterprise growth, and digital asset tokens like XRP serve as robust incentive mechanisms, crucial for activating decentralized networks and aligning stakeholder interests.”

Bayston further emphasized the strategic importance of XRP in a balanced investment approach: “We consider XRP a critical cornerstone within a diversified digital investment portfolio. The Franklin XRP Trust (XRPZ) offers distinct advantages, including regulated custody services, transparent daily pricing, and enhanced liquidity, thereby alleviating the operational burden of self-custody for investors.”

A Competitive Landscape: Grayscale and Bitwise Join the Fray

The institutional race for XRP market share is intensifying. Notably, Grayscale’s own XRP ETF also made its debut on Monday, setting the stage for robust competition. Meanwhile, crypto asset management firm Bitwise, which launched its XRP ETF a week prior, has already reported significant success. Bitwise CEO Hunter Horsley disclosed that their XRP ETF attracted approximately $118 million in inflows during its inaugural week of trading, signaling strong investor appetite.