• Franklin Templeton is throwing their hat in the ring for an XRP ETF, joining companies like Bitwise and Canary Capital.
• There’s a growing buzz that with the Ripple legal case potentially wrapping up, the SEC might just give XRP ETFs the green light.
• For a while now, XRP’s security status has been a question mark, making mainstream financial players hesitant.

Big news in the crypto ETF world! Asset management giant Franklin Templeton has officially filed to launch an exchange-traded fund (ETF) that will track the live price of XRP, less a bit for fees. They’re not alone though – Bitwise, Canary Capital, and a bunch of other big names in crypto investment are also in the mix, making it a pretty competitive race.

This move is definitely a strong signal that traditional finance is starting to see some serious potential in XRP, even after all the regulatory question marks hanging over it for years.

What’s the deal with the Franklin Templeton XRP ETF?

If approved, Franklin Templeton’s XRP ETF is aiming to trade on the Cboe BZX exchange. They’ve tapped Coinbase, a major crypto exchange in the US, to keep the fund’s XRP safe and sound as their custodian.

Investing in this ETF would mean you get to ride the waves of XRP’s price, but just so you know, you won’t get any extras like tokens from blockchain forks or airdrops. This is pretty standard for these types of offerings, as everyone’s keen to get Ripple-related investment options out there as the regulatory picture becomes clearer.

So, what’s the chance of an XRP ETF actually happening?

The US Securities and Exchange Commission (SEC) is definitely paying attention. They’ve acknowledged the XRP ETF proposals from other players like 21Shares, WisdomTree, CoinShares, Canary Capital, and Grayscale Investments.

While the SEC is still weighing things up, they’ve already pushed back their decision on Grayscale’s XRP ETF proposal until May, which shows they’re taking a careful, considered approach to approving these products.

Adding a twist to the story is the potential end to Ripple Labs’ long and ongoing legal battle with the SEC. This case has been a major talking point when it comes to XRP’s regulations. A resolution here could be a game-changer, as it’s been a big roadblock for XRP ETF approvals, keeping some investors waiting on the sidelines.

Recently, the SEC has dismissed lawsuits against other crypto companies, which is adding to the optimism that a Ripple settlement could pave the way for XRP-based investments.

Experts have been crunching the numbers on approval odds. Back in February, Bloomberg estimated a 65% chance for XRP ETFs. Keep in mind, that was before these latest legal developments. At that time, Litecoin, Solana, and even Dogecoin were seen as having a better shot.

But now, with the Ripple lawsuit potentially nearing an end and Franklin Templeton jumping into the mix, things might be shifting. Someone like Franklin Templeton getting involved suggests there’s a growing belief in the institutional world that the SEC might just give these products the thumbs up, especially if we get some regulatory clarity.

If the Ripple lawsuit has a positive outcome, it could remove a significant hurdle, turning XRP ETFs from a long shot into something very real.

For years, the big question mark over XRP’s security status has held back its wider adoption by mainstream finance. Resolving this could not only open doors for ETF approvals but also give XRP a more solid price boost as investors become more confident in its legal footing.