$1.6 Trillion Asset Manager Goes Deep Into XRP, Shares Reason Behind The Move

Overview

Franklin Templeton, a prominent asset management firm with over $1.6 trillion in assets, has solidified its position on XRP by integrating it into its digital asset strategy. The firm recently highlighted its commitment to XRP through a social media post, emphasizing the launch of its Spot exchange-traded product, XRPZ. This move underscores a growing institutional confidence in both XRP and the XRP Ledger.

Franklin Templeton’s Strategic Entry With A Spot XRP ETF

Franklin Templeton’s entrance into the XRP ETF market represents a significant validation of the cryptocurrency from a traditional financial institution. The firm introduced the Franklin XRP Trust, which trades under the ticker XRPZ on the NYSE Arca. This trust was launched to provide investors with a regulated means of accessing the digital asset, circumventing the complexities associated with direct token ownership.

The fund operates as a grantor trust that holds XRP and calculates its net asset value daily based on established reference rates. Custodial services are provided by Coinbase Custody Trust Company, while BNY Mellon manages the administration. The decision to launch a Spot XRP ETF stems from Franklin Templeton’s strong conviction in the potential of XRP and the XRP Ledger.

Roger Bayston, the Head of Digital Assets at Franklin Templeton, emphasized the capabilities of the XRP Ledger, which is designed for real-time, low-cost settlements and efficient cross-border payments. He also pointed out the importance of XRP’s market capitalization and its role in global value transfer, making it a crucial asset for investors seeking regulated exposure.

Franklin Templeton’s digital asset offerings already include Bitcoin and Ethereum ETFs, with XRP being the latest addition. The firm, established in 1947, has built a strong reputation for managing trillions in equity, fixed income, and multi-asset investments worldwide. Its foray into crypto ETFs reflects a broader trend among established asset managers engaging with the cryptocurrency sector.

Performance And Market Reception Of XRPZ Since Launch

The recent approval of Spot XRP ETFs in 2025 has enabled both institutional and retail investors to gain regulated exposure to cryptocurrencies. Since their introduction in November, these Spot ETFs, including XRPZ, have seen substantial capital inflows. In total, these products have attracted over $1.16 billion in net inflows, contrasting with recent outflows observed in Bitcoin and Ethereum ETFs.

Franklin Templeton’s XRPZ has reportedly surpassed 100 million XRP in holdings, with cumulative inflows reaching approximately $242 million at the time of reporting. This robust performance highlights the growing interest and confidence in XRP as a viable investment option.

From author

The engagement of a major firm like Franklin Templeton in the XRP market signifies a pivotal moment for the cryptocurrency, as institutional interest often drives broader acceptance and legitimacy. The structured approach of the Spot ETF allows for a more accessible investment route, potentially paving the way for increased participation from both institutional and retail investors.

Impact on the crypto market

• Franklin Templeton’s endorsement of XRP may encourage other institutional players to consider similar investments.
• The launch of XRPZ reflects a shift towards regulated investment vehicles for cryptocurrencies, enhancing legitimacy.
• The performance of XRPZ amidst outflows from other ETFs suggests a potential shift in investor sentiment towards XRP.
• Increased capital inflows into XRPZ could lead to greater market stability and confidence in the XRP ecosystem.
• The success of the Spot XRP ETF may prompt further innovations in cryptocurrency investment products from traditional financial institutions.