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XRP News Today: XRP ETFs Launch While SEC's Security Status Remains Unsettled

XRP News Today: XRP ETFs Launch While SEC's Security Status Remains Unsettled

Bitget-RWA2025/11/24 18:16
By:Bitget-RWA

- Franklin Templeton launched XRPZ ETF on NYSE Arca, offering regulated XRP exposure via a grantor trust structure with a 0.19% fee. - SEC's August 2025 Ripple settlement cleared regulatory hurdles, enabling XRP ETF approvals from major providers like Bitwise and Grayscale. - XRP's cross-border payment utility and low energy consumption drive institutional interest, though price volatility and unresolved SEC classification persist. - XRPZ employs Coinbase/BNY Mellon custody for transparency but lacks activ

Franklin Templeton's

ETF (XRPZ) made its debut on NYSE Arca on November 24, 2025, representing a significant milestone for institutional investors seeking exposure to XRP, the digital currency powering the XRP Ledger (XRPL). Structured as a grantor trust, the fund the CME CF XRP-Dollar Reference Rate (New York Variant), giving investors regulated access to the asset without the challenges of direct custody. The ETF charges an annual fee of 0.19%, which is waived for the first $5 billion in assets through May 2026. XRPZ expands Franklin's suite of crypto ETFs, which already includes funds linked to (EZBC), (EZET), and a diversified crypto index (EZPZ) .

This ETF launch comes on the heels of a major regulatory breakthrough. In August 2025, the U.S. Securities and Exchange Commission (SEC) resolved its long-running legal dispute with Ripple, paving the way for XRP-based investment products. This regulatory clarity, combined with increasing institutional interest in digital assets, has led to a surge in XRP ETF approvals, with new offerings from Bitwise, Grayscale, and Canary Capital

. Franklin's move into this market highlights XRP's growing importance as a "core component" of global payment systems, , Franklin Templeton's head of digital assets.

XRP's effectiveness for cross-border payments has fueled its popularity. The XRPL

every second with low energy consumption, supporting instant and affordable transfers for banks and other financial entities. that XRP's weak correlation with traditional markets and its utility in asset tokenization make it an attractive choice for diversified investment strategies. Still, the asset remains highly volatile, as of November 26, following an initial surge after launch.

Investor response to these ETFs has been varied. While

and Grayscale's GXRP ETF saw early capital inflows, the overall crypto sector experienced $1.94 billion in withdrawals, with Bitcoin ETFs facing notable redemptions . that XRPZ could see $30 million in trading volume on its first day, fueled by both institutional and retail interest. On the other hand, , pointing out that XRP's price may come under pressure if ETF inflows do not compensate for broader market downturns.

Regulatory ambiguity continues to be an issue. The classification of XRP as either a security or a commodity is still unresolved, and the SEC's shifting approach to crypto ETFs adds further uncertainty.

, is not registered under the Investment Company Act of 1940, which means investors face increased risks, including price volatility and operational hurdles.

The ETF's custody is handled by Coinbase Custody and BNY Mellon, which

some of these risks by ensuring daily transparency and institutional-level security. Nonetheless, the fund's passive strategy— —means its value will move in tandem with XRP's market price.

As XRP ETFs become more popular, they have the potential to transform the token's market landscape. By providing a regulated and liquid investment option for traditional investors, these funds could enhance XRP's adoption and market depth. However,

on continued regulatory transparency and XRP's ability to serve as a global financial bridge asset.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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