Monday, December 1, 2025

Franklin Templeton launches XRPZ spot ETF on NYSE Arca, calling XRP “foundational” for global finance

XRP token beside an ETF dashboard on a NYSE-style screen with blue neon glow, foundational to global finance.

Franklin Templeton’s launch of the Franklin XRP ETF (XRPZ) on NYSE Arca marks a significant moment for institutional access to XRP, offering regulated exposure without the hurdles of direct custody. With over $1.5 trillion under management, the firm is positioning XRP as a “foundational asset for global finance” while expanding its crypto ETF lineup.

A new gateway for institutional XRP participation

The XRPZ ETF holds only XRP and cash, and its spot-based design provides clean, direct exposure rather than relying on derivatives. Franklin Templeton aims to reduce onboarding frictions that have historically kept institutions at the sidelines, waiving its 0.19% fee until assets reach $1B.

Franklin Templeton, already active with Bitcoin and Ether products, frames XRPZ as a tool to unlock new liquidity channels for traditional platforms by simplifying custody requirements and integrating smoothly into existing workflows.

The firm emphasizes XRP’s value in payments, arguing that its architecture enables faster, cheaper cross-border transfers while reducing reliance on pre-funded accounts. Its network already supports connections across more than 80 countries, reinforcing the case for institutional relevance.

Still, the regulatory backdrop has been complicated. The SEC’s 2020 lawsuit against Ripple created years of uncertainty that froze institutional growth, and the filing process for XRPZ included multiple updates, including removing a clause that allowed regulatory delays. Approvals for other issuers earlier in November cleared the final path toward the ETF’s debut.

Market reaction was mixed. XRPZ showed strong early inflows and surpassed Grayscale’s product in its first 90 minutes, contributing to more than $293M in combined category inflows. But XRP’s price was volatile, spiking above $2.50 before falling below $2, ending the quarter down 35%.

Across the competitive landscape, Canary Capital, Bitwise, Amplify, 21Shares, WisdomTree, and others entered the race, with investment bank estimates pointing to as much as $8B in potential inflows into XRP ETFs over time.

XRPZ’s launch represents a major step in XRP’s institutionalization, even if the initial signal remains ambivalent, with strong ETF demand overshadowed by a sharp market correction.

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