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The battle to bring the first U.S.-listed XRP exchange-traded fund (ETF) to market is heating up. Franklin Holdings, the parent of asset management behemoth Franklin Templeton, has formally filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for an XRP ETF. If approved, the fund would enable institutional and retail investors to gain exposure to XRP through a regulated investment vehicle.
Critical Aspects of Franklin’s XRP ETF Application
Main Broker: Coinbase will be the fund’s main broker upon approval, performing the ETF trading activities.
Custody Facility: The fund assets will remain in custody at Coinbase Custody, providing a safe storage of XRP assets.
Listing at the Exchange: The ETF shares will be traded on the CBOE BZX Exchange, a well-used platform for cryptocurrency-based financial instruments.
The Significance of an XRP ETF Approval
Approval of an XRP ETF would be a big win for the crypto space, especially in light of the continued regulatory woes plaguing XRP and Ripple Labs. Success could:
Enhance institutional acceptance of XRP
Offer a regulated investment product for retail consumers
Enhance liquidity and price stability for XRP
SEC’s Stance and the Road Ahead
The SEC has been traditionally risk-averse when it comes to the approval of crypto ETFs, with numerous Bitcoin and Ethereum ETFs having been subjected to extended regulatory review periods. Yet the recent tide of spot Bitcoin ETF approvals reflects a changing regulatory tide. Franklin Holdings’ XRP ETF, if approved, might open the floodgates for similar offerings around alternative digital assets.
Market players and XRP supporters are eagerly awaiting the SEC’s ruling, which would have implications for subsequent crypto ETFs. Follow us for the latest on this historic development in the world of digital assets.
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