Key Developments in Franklin's Crypto ETF
The Franklin Crypto Index ETF is preparing to broaden its investment scope beyond just Bitcoin and Ethereum to encompass a wider array of digital tokens, reflecting the dynamic nature of the cryptocurrency market.
Initially focused on the two largest cryptocurrencies, the ETF will now incorporate XRP, Solana, Dogecoin, Cardano, Stellar, and Chainlink, thereby offering a more diversified exposure to the asset class. This strategic shift is enabled by new Cboe exchange rules, approved by the SEC, which permit crypto funds to track all assets within their benchmark indices, rather than being limited to Bitcoin and Ethereum.
This expanded investment strategy will be implemented starting December 1, 2025. The ETF's holdings will be rebalanced quarterly, allowing for the addition or removal of digital assets based on index composition and prevailing market conditions. Franklin has also enhanced its operational framework: participants involved in creating and redeeming ETF shares can now utilize actual crypto assets in addition to cash, a change expected to improve tracking accuracy and liquidity.
XRP ETFs Drive Significant Investor Demand
The restructuring of the index ETF coincides with another significant development for Franklin Templeton – the launch of its spot XRP fund, which began trading under the ticker XRPZ with a 0.19% sponsor fee. The timing of this launch has proven exceptionally opportune, coinciding with a surge in investor interest in regulated XRP products.
Following the sequential release of several ETFs, XRP has experienced a notable price increase, rising over 7% to $2.24. Market observers are characterizing this as the most robust institutional-grade demand the token has ever attracted.
Franklin Templeton is now among a growing number of issuers providing structured access to XRP for U.S. investors.
- •Grayscale recently introduced its new GXRP product.
- •Bitwise saw $25 million in trading volume on its first day and $118 million in inflows within its initial week.
- •Canary Capital, an early entrant this month, garnered over $250 million in assets on its launch day.
Some analysts have commented that no other alternative layer-1 ecosystem has garnered such rapid ETF attention, placing XRP in a distinguished category of digital assets now supported by multiple institutional-grade investment channels.