Franklin Templeton and Grayscale Investments filed amended applications with the Securities and Exchange Commission for proposed XRP exchange-traded funds, removing procedural barriers that previously delayed approval timelines. The amendments signal preparation for potential product launches as institutional interest in cryptocurrency investment vehicles continues to expand beyond Bitcoin and Ethereum.

What to Know:

• Franklin Templeton eliminated the 8(a) regulatory provision from its S-1 registration, a clause that can postpone ETF effectiveness pending SEC review
• Grayscale submitted its second amendment designating Edward McGee as chief financial officer and Davis Polk & Wardwell LLP as legal counsel for the XRP Trust
• Multiple asset managers including Canary Funds and Bitwise have also removed delaying amendments from their filings, indicating coordinated industry preparation

Franklin Templeton Streamlines Filing Process

Franklin Templeton revised its S-1 registration statement by removing the 8(a) provision, a regulatory clause that allows the SEC to suspend the effectiveness of an ETF filing during review. The change aligns the firm's application with approval timelines observed in previous cryptocurrency ETF launches. Market analysts have pointed to November as a potential launch window based on historical SEC processing patterns.

The asset management firm operates EZBC, a Bitcoin spot ETF, and EZET, an Ethereum spot ETF. These products drew over $500 million in institutional capital during their first quarter of operation. Franklin Templeton manages approximately $1.5 trillion in global assets. That figure represents more than 40 times the assets under management reported by Grayscale.

Grayscale Advances Trust Structure

Grayscale filed Amendment No. 2 to its Form S-1 on Nov. 3, formalizing leadership appointments and legal representation for the proposed Grayscale XRP Trust. The filing named McGee as CFO and designated Davis Polk & Wardwell LLP as counsel.

The firm converted its GBTC Bitcoin trust and ETHE Ethereum trust into spot ETFs following SEC approval in January 2024.

Grayscale manages roughly $38 billion in digital asset products. Davis Polk & Wardwell has represented the firm in previous cryptocurrency ETF applications, providing consistency in regulatory strategy.

The XRP Trust follows operational frameworks Grayscale developed through earlier product conversions. The firm has established protocols for navigating SEC review requirements, including custody arrangements and market surveillance systems.

Regulatory Landscape and Industry Coordination

The amended filings reflect simultaneous action across multiple asset managers. Canary Funds and Bitwise recently modified their applications to eliminate delaying provisions, suggesting industry-wide preparation for potential approval decisions.

SEC review processes examine custody structures, market surveillance mechanisms and compliance frameworks for digital asset products. These components form the foundation of regulatory oversight in cryptocurrency markets. Approval decisions will determine institutional access to XRP investment vehicles and establish regulatory precedents for altcoin-based ETFs beyond Bitcoin and Ethereum.

The coordinated filing amendments indicate asset managers expect resolution on XRP ETF applications in the near term. Such approvals would expand the range of cryptocurrency products available to institutional investors through regulated exchanges.

Understanding Key Terms

An exchange-traded fund is an investment vehicle that trades on stock exchanges and tracks the performance of an underlying asset. Spot ETFs hold the actual cryptocurrency rather than derivative contracts. The S-1 form is a registration statement required by the SEC for companies planning to issue securities to the public. The 8(a) provision allows regulators to suspend the effectiveness of a registration statement during review periods.

A trust structure, like Grayscale's proposed XRP Trust, holds assets on behalf of investors and issues shares representing ownership stakes. Asset managers use trusts as vehicles to convert holdings into publicly traded products. Custody structures refer to systems that safeguard and store cryptocurrency assets, a critical component of SEC oversight for digital asset products.

Closing Thoughts

Franklin Templeton and Grayscale have modified their XRP ETF applications to remove procedural delays, positioning their products for potential SEC approval. The amendments follow established patterns from Bitcoin and Ethereum ETF launches and reflect broader industry preparation for regulatory decisions on alternative cryptocurrency investment vehicles.