SEC Reviews Franklin Templeton’s Spot XRP ETF Proposal, Decision Expected September 2025 Amid Rising Market Interest
The U.S. Securities and Exchange Commission (SEC) is formally reviewing proposals from Franklin Templeton for spot XRP and Solana (SOL) ETFs. This marks a significant step toward expanding regulated altcoin investment beyond Bitcoin ETFs. The Franklin XRP ETF, if approved, would physically hold XRP, with Coinbase Custody Trust as custodian and pricing based on the CF Benchmark CME XRP-Dollar Index. The SEC’s review is in the ’Order Instituting Proceedings’ stage, and a final decision is set for September 9, 2025, though extensions are possible. The SEC is seeking public comments, specifically on XRP market maturity and mechanisms to prevent price manipulation. If approved, these ETFs will be listed on the Cboe BZX exchange, signaling increased institutional interest and potentially boosting market legitimacy and liquidity for altcoins like XRP and SOL. Historically, ETF approvals for cryptocurrencies have driven institutional inflows and enhanced market credibility. In the short term, the news has led to notable spikes in XRP network transactions and a 4.14% price increase, with SOL also showing price resilience. Long term, approval could broaden regulated exposure to non-Bitcoin cryptocurrencies; however, the SEC’s cautious approach underlines ongoing regulatory uncertainty. Crypto traders should monitor this process closely, as a green light could act as a strong catalyst for the broader altcoin market.
Bullish
The SEC’s formal review and potential approval of spot XRP and Solana ETFs represent major regulatory progress and greater institutional acceptance of altcoins. Historically, the debut of Bitcoin ETFs triggered increased legitimacy and robust inflows from institutional investors, bolstering both price and market stability. Current on-chain activity and positive price action for XRP, alongside growing interest in SOL, suggest short-term trading optimism. If ETFs are approved, it could significantly boost liquidity, reduce volatility, and encourage long-term accumulation by institutional investors. Although there remains considerable regulatory uncertainty and the approval timeline is extended, the overall market view is bullish, especially given the precedent set by previous crypto ETF launches.