XRP jumped more than 9% to $2.27 after Franklin Templeton and Grayscale launched their spot XRP ETF on Monday. The $1.69 trillion asset manager joined Bitwise, Grayscale, and Canary Capital in offering regulated XRP investment products, calling XRP “foundational” for global settlement infrastructure.

This wave of ETF launches marks a turning point for XRP. After regulatory uncertainty faded with Ripple’s SEC settlement earlier in 2025, institutional interest is surging.

Wave of Institutional ETF Launches Signals Market Maturity

Franklin Templeton debuted the Franklin XRP ETF (XRPZ) on NYSE Arca, offering regulated XRP exposure through a grantor trust. The fund tracks the CME CF XRP-Dollar Reference Rate and uses Coinbase Custody as custodian, with BNY Mellon as administrator. According to Franklin Templeton’s announcement, the ETF allows investors to follow XRP’s performance transparently, without buying the cryptocurrency directly.

“XRPZ offers investors a convenient and regulated way to access a digital asset that plays a critical role in the global settlement infrastructure,” stated David Mann, director of ETF products and capital markets at Franklin Templeton.

Grayscale has also launched its XRP Trust ETF (GXRP) with a zero-fee introductory period, highlighting XRP’s strong market position.

Bitwise, which launched its XRP ETF a week earlier, reported $100 million in initial inflows. The clustering of ETF launches signals that asset managers were prepared for regulatory clarity, which arrived from the SEC in 2025.

Regulatory Resolution Paves Way for Wall Street Entry

Ripple’s $125 million settlement with the Securities and Exchange Commission in May 2025 ended years of uncertainty. SEC statements confirm that Ripple resolved all claims without admitting wrongdoing, paid $50 million directly to the agency, and had the rest released from escrow. This resolution gave large financial institutions the assurance needed to pursue spot ETFs.

Franklin Templeton’s participation is notable for its size, lending credibility to XRP’s story as a payment utility. Investors can now access XRP through regulated products managed by well-known custodians and with clear transparency.

Source: BeInCrypto

Still, prospectuses caution that risks remain, including XRP’s volatility, limited diversification, and regulatory uncertainty abroad. The ETF holds only XRP and cash, making it unsuitable as a standalone investment.

XRP’s Technical Advantages Drive Institutional Interest

XRP runs on the decentralized XRP Ledger (XRPL), designed for rapid payment settlement. XRPL documentation highlights near-instant, low-fee transactions and notes that over 3.3 billion transfers have beenprocessed on the network.

XRPL’s consensus system is said to be energy efficient, settling transactions in three to five seconds. These features attract institutions seeking alternatives to SWIFT and traditional cross-border systems.

Franklin Templeton’s prospectus and Grayscale Research both stress XRP’s usefulness as a currency bridge and for efficient, scalable transfers. With these characteristics, XRP sets itself apart from cryptocurrencies like Bitcoin, which mainly serve as a store of value.

The current rally coincides with rising open interest in XRP futures, pointing to growing involvement from institutional and retail traders and suggesting sustained market activity.

Geopolitical Dimensions and China Exposure Speculation

Some analysts believe XRP could play a role in new cross-border payment corridors, including those in Asia, the Middle East, and Africa. Black Swan Capitalist has argued that China has indirect exposure to XRP through the BRICS New Development Bank and leading Japanese fintech SBI Holdings. However, direct adoption remains limited by Chinese policies.

BRICS business council recommendations from April 2025 urged support for cross-border digital settlements — a theme in line with XRP’s core design, despite no explicit mention of the cryptocurrency. The recommendations highlight a growing need for efficient digital payment systems.

The European Central Bank is also examining cross-border payment infrastructure. Project Nexus was discussed during an April 2025 speech about linking payment systems in Asia and Europe. These trends echo the global relevance of the XRP Ledger’s use cases.