by Aima Raza
Franklin Templeton wants to start an XRP-related exchange-traded fund but needs regulatory permission along with many competitors. By joining the race Franklin Templeton forms part of a group led by Bitwise and other companies attempting to bring XRP ETFs to U.S investors.
Franklin Templeton wants to manage an XRP-based ETF that captures the Ripple market value after deducting its costs. Coinbase will hold and protect digital assets in the XRP-based ETF which will be listed on Cboe BZX exchange. The ETF holders won’t participate in XRP-related profit distributions and breakups of the XRP cryptocurrency.
The SEC reviews several applications for ripple ETFs as they decide over these investment options. The SEC extended its review of Grayscale’s XRP ETF concept with a fresh deadline set for May.
XRP ETF Approval Prospects
Bloomberg analysts believe that the SEC will approve XRP ETFs with a predicted success rate of 65%. The projected chances for Litecoin, Solana, and Dogecoin ETF approvals are higher than 65% which is significantly lower than Ripple forecast. Since the estimations were created in February they might not capture new changes in how regulators handle the issue.
Ripple Labs continues its legal struggle against the SEC toward final settlement. FOX Business correspondent Eleanor Terrett indicates that progress is reaching a point in what has long been a regulatory hurdle for investors of the token . Ripple supporters see progress in its case as the SEC has regularly settled with other cryptocurrency outfits.
🚨SCOOP: Two well-placed sources tell me that the @SECGov vs. @Ripple case is in the process of wrapping up and could be over soon.
My understanding is that the delay in reaching an agreement is due to Ripple's legal team negotiating more favorable terms regarding the August…
— Eleanor Terrett (@EleanorTerrett) March 12, 2025
The cryptocurrency market demonstrated immediate response when news emerged that the Ripple lawsuit was close to ending. The Ripple market price rose 4% over one day after news of the lawsuit began. The market showed bearish signs again when recent updates did not push XRP’s trading charts toward positive movement. The market behavior follows the traditional pattern where investors purchase news on potential benefits before selling when expectations are not met.
XRP ETF Legal Hurdles
Positive SEC-Ripple resolution increases the probability Ripple will receive ETF approval. The lawsuit is causing problems because it affects how XRP is defined as a security and makes it hard for regulatory agencies to set rules for Ripple. A resolution of regulatory barriers will increase the prospects of the SEC allowing XRP-based ETFs.
Franklin Templeton’s commitment to launch an XRP ETF product shows their belief that Ripple will receive necessary legal approval as an investment asset. The company’s entry into Ripple investment products builds more support to growing market demand since investors see the firm’s backing as a plus. Several world-leading asset managers align to support an XRP ETF application and drive its acceleration because of increased demand.
XRP ETF market entry will depend both on current SEC rules toward Ripple and on rising institutional demand for the token investments. The planned products would make it easier for people to put money into Ripple while helping to extend its use among financial institutions.
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