Franklin Templeton XRP ETF Approved! Initial $5 Billion with No Fees

The New York Stock Exchange (NYSE) Arca has approved the listing of the Franklin Templeton XRP ETF, and the relevant documents have been submitted for SEC certification. The Franklin Templeton XRP ETF will charge an annual sponsor fee of 0.19% of net asset value. The sponsor plans to waive fees on the initial $5 billion in assets until May 31, 2026. The competition for spot XRP ETFs has officially begun, dubbed the “Turkey Trot” ahead of Thanksgiving.

NYSE Arca Approves Franklin Templeton XRP ETF Listing

(Source: SEC)

NYSE Arca has approved the listing of the Franklin Templeton XRP ETF and formally certified this move to the SEC. This means the fund has met all exchange requirements and is set to launch soon. NYSE Arca is an electronic trading platform under the New York Stock Exchange focused on exchange-traded products. Its approval signifies that the Franklin Templeton XRP ETF has passed a rigorous listing review.

According to Franklin’s latest disclosure, the Franklin XRP Trust ETF will be listed under the ticker symbol XRPZ and will charge an annual net asset sponsor fee of 0.19%. This rate is quite low among ETF products, indicating Franklin Templeton’s attempt to attract capital inflows through competitive pricing. In comparison, early Bitcoin ETFs typically charge between 0.20% and 0.25%, giving Franklin a clear pricing advantage.

Even more striking is the fee waiver policy. The sponsor plans to completely waive fees on the first $5 billion in assets until May 31, 2026. This means that over the next 18 months, the first $5 billion invested will enjoy zero-fee access to the XRP ETF. Such an aggressive pricing strategy shows Franklin Templeton’s determination to quickly establish a leading position in the XRP ETF race.

The $5 billion free quota is considerable. For comparison, Bitwise’s XRP ETF had a first-month trading volume of several hundred million dollars. If Franklin can attract $5 billion in capital, it will become the absolute leader in the XRP ETF market. Such a scale of inflow would also have a significant impact on the price of XRP, as ETF managers must purchase XRP on the spot market to support ETF shares.

Franklin will soon join several fund managers in bringing a suite of regulated investment products linked to XRP to the US market. Canary Capital and Bitwise Asset Management launched spot XRP ETFs earlier this month. Grayscale is expected to launch spot XRP and Dogecoin ETFs tomorrow, pending final clearance. This concentrated wave of listings reflects strong market confidence in XRP ETFs, with multiple institutions betting on this segment simultaneously.

Ripple CEO: The “Turkey Trot” for XRP ETFs Has Officially Begun

Ripple CEO Brad Garlinghouse stated that the competition for spot XRP ETFs has officially started, referring to it as the “Turkey Trot” ahead of Thanksgiving as the first US product goes live. Not long ago, Bitwise Asset Management confirmed that the Bitwise XRP ETF began trading on the NYSE on November 20 under the ticker XRP, providing US investors with a regulated means to invest in this digital asset.

“The Thanksgiving rush (let’s call it the ‘Turkey Trot’!?) has now begun… Congratulations to @BitwiseInvest on a successful launch today!” Garlinghouse wrote on X. This humorous metaphor quickly spread throughout the community, becoming a popular phrase to describe the XRP ETF competition. The “Turkey Trot” is a metaphor for the fierce competition among institutions before Thanksgiving, with the winner being the one that attracts the most capital in the shortest time.

Bitwise’s launch marks a milestone for XRP holders. Bitwise described the moment as “a milestone day for the XRP community,” noting that the ETF aims to provide easy access to XRP and help the token lead the modernization of the global payments industry. The company emphasized that XRP’s target market size is estimated to be as high as $250 trillion, highlighting the token’s utility as a low-cost, fast-settlement network built for large-scale value transfer.

The launch of this ETF comes as interest in crypto-related investment products is rekindled, with institutional demand playing an increasingly important role in overall market liquidity and price discovery. After Bitcoin ETFs launched in early 2024 and attracted tens of billions in inflows, strong institutional demand for crypto ETFs was proven. As the second wave of crypto ETF products, XRP ETFs are expected to replicate this success.

XRP ETF “Turkey Trot” Contestants

Bitwise XRP ETF: First to launch on November 20, capturing the first-mover advantage

Franklin Templeton XRP ETF (XRPZ): Approved by NYSE, bringing a strong $5 billion fee-free offer

Canary Capital XRP ETF: Launched earlier this month, targeting early adopters

Grayscale XRP ETF: Expected to launch tomorrow, leveraging brand strength to attract capital

The core of this competition is who can attract the most capital the fastest. First-mover advantage, fee competitiveness, brand recognition, and distribution networks are all key factors. Franklin Templeton’s $5 billion fee-free strategy may be the most lethal weapon.

Regulatory Clarity Opens the Door for XRP ETFs

This launch also marks a significant step forward for XRP after years of regulatory uncertainty, previously plagued by Ripple’s legal battle with the US Securities and Exchange Commission (SEC). In December 2020, the SEC filed a lawsuit accusing Ripple of selling XRP as an unregistered security. This litigation dragged on for nearly three years, severely affecting XRP’s development in the US market.

The pressure persisted until July 2023, when a federal judge ruled that XRP sold on secondary markets does not constitute a security. This ruling was widely interpreted as clearing the way for products like spot XRP ETFs. While some issues in the case remain unresolved, the ruling marked a new era of institutional participation. The increased legal certainty was a key prerequisite for Franklin Templeton’s XRP ETF approval.

XRP is currently the fourth-largest cryptocurrency by market capitalization, with a market value of about $136 billion. Since its launch in 2012, XRP has had a loyal community and is a blockchain optimized for cross-border payments. This utility-focused positioning differentiates XRP from Bitcoin, which is primarily a store of value, and provides a different investment narrative for the ETF.

As a global asset management giant, Franklin Templeton manages $44.7 billion in ETF assets, ranking 19th among ETF issuers. This scale brings a strong distribution network and institutional relationships, allowing rapid product promotion to existing clients. In contrast, Bitwise and Canary Capital are much smaller, giving Franklin overwhelming advantages in brand recognition and resource mobilization.

From a broader perspective, the approval of the Franklin Templeton XRP ETF marks another major milestone in the institutionalization of cryptocurrency. Following Bitcoin and Ethereum ETFs, XRP becomes the third cryptocurrency to obtain a mainstream ETF product. This institutionalization not only enhances the legitimacy of crypto assets but also provides retail investors with safer and more convenient investment channels.