When the U.S. approved its first spot Bitcoin and Ether exchange-traded funds (ETFs) on January 10, 2024, trading volume was huge, a signal that mainstream investors were eager to access crypto through the brokerage accounts they already use. The growth of the Ethereum and Bitcoin ETFs has shifted attention to the next likely candidate: XRP, the payments-oriented digital asset created in 2012. Franklin Templeton’s proposed XRP spot ETF now sits before the Securities and Exchange Commission (SEC), which must issue a first-deadline decision by June 17, 2025. Approval could redefine how both retail traders and banks gain exposure to one of the world’s largest cryptocurrencies.
Understanding XRP
XRP is the native token of the XRP Ledger (XRPL), an open-source blockchain purpose-built for fast, inexpensive, and energy-efficient value transfer. A typical XRP transaction settles in three to five seconds at a cost of fractions of a cent, consuming far less electricity than proof-of-work networks such as Bitcoin. Ripple, the company that initially fostered XRPL development, markets XRP as a “bridge” asset that lets financial institutions move liquidity across borders without locking capital in nostro accounts.