Franklin Templeton has submitted its new exchange-traded fund (ETF) focusing on the performance of Ripple(XRP). The Trust, organized as a Delaware statutory trust, will offer shares representing fractional ownership in the Fund’s assets, primarily consisting of XRP.
Nate Geraci, president of The ETF Store, disclosed that Franklin Templeton, which has an asset management scale of more than 1.5 trillion US dollars, has officially submitted an application for an XRP ETF.
The Franklin XRP ETF seeks to track the price performance of XRP, minus the Fund’s expenses. Investors can purchase shares in the Fund, with the aim of participating in the cryptocurrency’s price movements. The Fund’s assets will be held in custody by Coinbase Custody Trust Company, LLC, while cash holdings will be managed by another custodian yet to be named.
The Trust has outlined that the offering is still in its early stages and subject to change. The registration statement for the ETF is pending approval with the Securities and Exchange Commission (SEC), meaning the securities cannot be sold until it becomes effective.
Key players involved in the launch include Franklin Holdings, LLC, as the sponsor, and CSC Delaware Trust Company as the trustee. Franklin Distributors, LLC will serve as the marketing agent for the ETF. Coinbase Custody Trust Company will serve as the custodian of the fund’s XRP assets.
Notably, as per the official document, the Franklin XRP Trust is not registered as an investment company under the Investment Company Act of 1940, nor will it be regulated by the SEC or the Commodity Futures Trading Commission (CFTC).
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