What to Know:
- Franklin Templeton, managing $1.7 trillion in assets, acknowledges XRP’s pivotal role in global payments.
- Franklin Templeton has officially launched its XRP ETF (XRPZ), providing traditional investors with accessible exposure to XRP.
- XRPZ saw an impressive first-day launch, with $62.59 million in inflows.
Franklin Templeton, a global asset manager overseeing $1.7 trillion, has recognized XRP’s foundational role in global payments, coinciding with the launch of their new XRP ETF (XRPZ). This ETF offers traditional market participants a regulated avenue to gain exposure to XRP without directly holding the token. Franklin Templeton’s move signals growing institutional acceptance of XRP’s utility and potential.
Franklin Templeton emphasized XRP’s unique position in the digital payments landscape, highlighting the XRP Ledger (XRPL)’s design for payments, remittances, and tokenization. The firm’s Head of Digital Assets, Roger Bayston, noted that XRP adds a key incentive layer for decentralized networks and acts as a core asset in a diversified digital portfolio. This perspective reinforces the idea that XRP’s utility extends beyond speculation.
XRPZ operates as a grantor trust holding actual XRP, with daily NAV calculations based on the fund’s holdings and the CME CF reference rate. Institutional-grade partners such as Coinbase (as XRP custodian) and Bank of New York Mellon (as administrator and cash custodian) are involved. This structure aims to provide investors with transparency, regulated custody, and liquidity.
The launch of XRPZ and other XRP ETFs this month has seen significant inflows, demonstrating strong investor interest in XRP. Cumulatively, Monday saw $164 million in inflows into XRP, bringing total assets under management for XRP ETFs to $628.62 million. This initial success suggests a promising future for XRP-backed investment products.
Franklin Templeton’s entry into the XRP ETF market underscores the increasing institutional validation of XRP and its underlying technology. As regulatory landscapes evolve and digital asset adoption grows, such ETFs may become increasingly important for investors seeking exposure to the crypto market. This move may also prompt other major asset managers to consider similar offerings, potentially reshaping the investment landscape for XRP and other cryptocurrencies.
Source: Original article
