Franklin Templeton, a global asset management firm overseeing around $1.5 trillion in assets, has filed an application with the U.S. Securities and Exchange Commission (SEC) to introduce a spot exchange-traded fund (ETF) focused on XRP, the cryptocurrency associated with Ripple.

According to Reuters, the proposed Franklin (XRP) Trust aims to track the performance of XRP, offering investors direct exposure without the need to hold the digital asset themselves. The ETF is slated for listing on the Cboe BZX Exchange, with Coinbase Custody designated as the custodian for the fund's XRP holdings. ​

The SEC has a 240-day window to review Franklin Templeton's application and render a decision. This period allows the regulatory body to thoroughly assess the proposal, considering factors such as market stability, investor protection, and the evolving landscape of cryptocurrency regulations. ​

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Franklin Templeton's move aligns with a broader trend of asset managers seeking to introduce cryptocurrency-focused ETFs. Other firms, including Grayscale, WisdomTree, Bitwise, 21Shares, and Canary Capital, have also filed for XRP ETFs, reflecting a heightened institutional appetite for diversified digital asset investment vehicles.

The outcome of these applications could significantly influence the accessibility and acceptance of cryptocurrencies in traditional financial markets. As regulatory bodies deliberate on these proposals, the financial industry keenly awaits decisions that could pave the way for more mainstream adoption of digital assets.