Against the background of growing institutional confidence in the XRP, the United States Securities and Exchange Commission (SEC) is reviewing the Franklin XRP ETF proposal, which marks an acceleration of the ETF supported by encrypted currency and demonstrates the maturity of the XRP market.
SEC initiates formal review of the Franklin XRP ETF proposal
The United States Securities and Exchange Commission announced on 17 June that it had begun an assessment of the proposed changes to the Cboe BZX Exchange's rules for listing and trading an exchange-trade fund called “XRP ETF” in Franklin. The proposal was originally submitted on 13 March 2025, seeking approval of the commodity trust shares under rule 14.11(e)(4) of BZX. The review schedule was extended by the SEC on 29 April, but a formal review procedure has now been initiated under section 19(b)(2)(B) of the Securities Exchange Act 1934. As stated in the order:
The Commission is in the process of initiating proceedings under section 19(b)(2)(B) of the Act to decide whether to approve or reject the proposed rule change.
This ETF, managed by Franklin Holdings Limited, is intended to reflect the performance of the XRP price (before deduction of costs).CoinbaseThe Trust will act as the custodian of XRP, while the valuation will be calculated using the CME CF XRP-US dollar reference rate - New York variant - on a daily basis. The share, whether created or redeemed, will be in cash or in kind in 50,000 copies.
A central feature of the proposal is the composition of the Fund ' s assets. The document states that:
The Fund will hold only XRP, cash and cash equivalents.
The sponsors emphasized that these components are consistent with ETF investment objectives and structures.
SEC focus and public feedback requests
The SEC circular outlined concerns about compliance with section 6 (b) (v) of the Securities Exchange Act, which requires rules to prevent fraud and protect the public interest. The Commission has requested feedback from the public, stating: “In particular, the Commission would like to seek advice on the proposed scheme for listing and trading trusts, which would hold XRP, be designed to prevent fraud and manipulation, or raise new issues not previously considered by the Commission.” Interested parties were invited to submit written comments through the official SEC channel for further assessment.