XRP has recently gained momentum, soaring 9% in the past 24 hours, following Franklin Templeton’s announcement of a new exchange-traded fund (ETF) tracking the asset’s price. This perk in interest marks a pivotal moment for the digital currency, aimed at enhancing its visibility and accessibility in institutional investment portfolios.
At the time of writing, XRP was trading at $2.24, reflecting a 5.2% increase over the past week, thereby reversing some of the declines that had plagued it in recent weeks. However, it’s worth noting that the asset is still down more than 13% over the last month, indicating a turbulent market in which fluctuations can be expected. According to crypto price aggregator CoinGecko, market conditions remain volatile, often influenced by investor sentiment and regulatory dynamics.
The Franklin XRP ETF, trading under the ticker XRPZ, made its debut on the New York Stock Exchange Arca on Monday. Celebrating a successful launch, it recorded a substantial rise of 8.7%, starting from a price of $22.60. Such a positive reception hints at growing institutional interest in XRP, often seen as a significant player in the digital asset ecosystem.
On the same day, XRP, alongside other leading digital currencies, managed to reclaim some of the ground lost during a challenging period marked by a broader market slump. Bitcoin is gradually recovering after dipping to $82,175—its lowest level since early April—while Ethereum is making its way back from a four-month low, highlighting the resilience and accompanying risks inherent in the crypto market, as reported by CoinGecko.
Franklin Templeton’s newly launched fund aims to closely mirror XRP’s performance by utilizing the New York Variant of the CME CF XRP-Dollar Reference Rate for its benchmarks. This regulatory structure serves to enhance investor confidence, ensuring the fund operates under established financial frameworks that are absent in many other crypto investments.
David Mann, Head of ETF Product and Capital Markets at Franklin Templeton, expressed that “XRPZ offers investors a convenient and regulated way to access a digital asset that plays a foundational role in global settlement infrastructure, through the transparency and oversight of an ETF.” His statement underscores the growing legitimacy of cryptocurrency within traditional finance, which may attract both institutional and retail investors alike.
The excitement surrounding XRP doesn’t end with Franklin Templeton. Just this morning, Grayscale moved to uplist its own XRP and Dogecoin funds on the NYSE Arca. These new ETFs, named GXRP and GDOG respectively, indicate a growing trend among fund managers to spotlight digital assets that could redefine traditional investment paradigms.
Although these funds already existed, the uplisting signifies their transformation into true spot ETFs. This move parallels those of the Grayscale Bitcoin Trust and Grayscale Ethereum Trust, signaling an industry shift toward making cryptocurrency investments more authentic and accessible. Such developments are crucial for mainstream acceptance and potential regulatory validation.
Earlier this month, fund issuer Canary introduced an XRP ETF, which performed remarkably well, garnering over $17 million in inflows in less than 30 minutes, and $58 million by the end of the day—making it the most successful ETF launch this year. This level of interest signals robust investor sentiment towards XRP and an increasing appetite for digital assets in general.
