Asset management firm Franklin Templeton has filed a new application to launch an exchange-traded fund (ETF) that will track the spot price of the cryptocurrency XRP. This move highlights the increasing interest among asset managers in digital assets beyond the traditional Bitcoin.
The application, filed by Franklin Templeton on Tuesday, joins a series of similar applications by asset managers who are optimistic about receiving favorable treatment from the United States Securities and Exchange Commission (SEC) during the Trump presidency.
One of the reasons for interest in cryptocurrency ETFs is their ability to significantly simplify access to digital assets for institutional investors. Such funds have already attracted the attention of traders and asset managers alike, who are turning to alternative investments amidst volatility in traditional markets.
1. Franklin Templeton and Solana: Last month, Franklin Templeton filed an application to create an exchange-traded fund that will track the current price of Solana, another popular cryptocurrency.
2. Grayscale and Dogecoin: In January of this year, Grayscale Investments launched a fund tied to Dogecoin, which also generated interest in less traditional cryptocurrencies.
The cryptocurrency XRP, created by the American company Ripple, confidently holds its position as the fourth largest in the world by market capitalization, which amounts to approximately $124 billion, according to CoinGecko. Furthermore, XRP is among the cryptocurrencies that President Trump aimed to include in a new strategic reserve.
- Growth Over 12 Months: Over the past year, XRP's value has increased more than threefold.
- Planned Listing: Franklin's XRP-tracking ETF is preparing for listing on the Cboe BZX exchange.
It's also worth noting that the company has appointed Coinbase as the custodian of the fund's XRP assets, indicating a high level of trust in the platform.
Franklin Templeton's initiatives illustrate the persistent interest in expanding investment opportunities in digital assets. The creation of cryptocurrency ETFs based on assets like XRP, Solana, and Dogecoin opens up new market prospects, contributing to the development and legitimization of cryptocurrencies as an asset class.
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