XRP ETF Race Accelerates: Franklin Templeton Leads Wall Street’s Push for Approval
In the ever-intensifying race to launch the first U.S. spot XRP Exchange-Traded Fund (ETF), major asset managers are moving quickly to secure regulatory approval before the year ends. On November 5, Franklin Templeton’s FTI US submitted an updated S-1 filing for its XRP ETF, signaling a renewed push to fast-track approval amid rising competition from Bitwise Investments and Canary Funds.
The filing included a new “8(a)” clause, a technical amendment widely interpreted by analysts as a step toward an expedited launch. If successful, FTI US could bring the long-awaited XRP ETF to market within weeks — a major milestone in the integration of cryptocurrencies into traditional finance.
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| Source: X Post |
A New Chapter for Crypto ETFs
This latest move comes as the digital asset industry continues to gain traction among traditional investors. Spot Bitcoin ETFs, once considered an impossible dream, have already reshaped the market. Ethereum ETF applications followed swiftly. Now, attention has shifted to XRP, one of the most traded digital assets globally and the native token of the Ripple ecosystem.
Franklin Templeton’s updated filing may be more than procedural. It’s a statement of intent: the firm is positioning itself to lead the XRP ETF race. The addition of the “8(a)” clause effectively shortens the potential approval timeline, suggesting that the company expects — or hopes — for a favorable regulatory outcome soon.
Rivals Close Behind
FTI US is not alone in this push. Both Bitwise Investments and Canary Funds have also submitted updates to their own S-1 forms, reflecting the growing urgency among issuers to finalize compliance details. These filings are crucial because they remove the “delaying amendment” — a clause that gives the U.S. Securities and Exchange Commission (SEC) control over when a fund can go live.
Without that amendment, an ETF automatically becomes effective after twenty days unless the SEC intervenes. This rule change could allow these firms to bring their products to market faster than in previous ETF cycles, assuming no additional delays or objections from regulators.
Market observers interpret these moves as a sign of growing confidence within the crypto sector. “What we’re seeing now is the final sprint,” said a digital asset strategist familiar with ETF filings. “These firms have done all the groundwork. The only thing left is the SEC’s decision.”
Regulatory Friction: A Persistent Roadblock
Despite progress, the SEC’s reputation for slow and cautious handling of crypto-related applications continues to frustrate industry players. Critics argue that while major financial institutions are ready to innovate, the SEC’s hesitation is stifling growth and leaving U.S. investors at a disadvantage compared to those in more progressive jurisdictions.
For months, executives from multiple firms have urged the agency to adopt clearer guidelines. “The current approval process is outdated,” said one analyst. “It was designed for traditional funds, not digital assets. The longer the SEC waits, the more capital and innovation the U.S. risks losing overseas.”
The SEC has maintained that its cautious stance is meant to protect retail investors from market manipulation, liquidity risks, and volatility inherent in the crypto space. However, the growing demand for regulated exposure to assets like XRP shows that investor appetite remains strong despite uncertainty.
Market Response and Technical Analysis
The market’s immediate reaction to the ETF news has been mixed. While excitement around the filings briefly lifted trading sentiment, XRP’s price remains under pressure. As of Thursday, the token traded around $2.23, marking a 1.87% daily decline and continuing its downward trajectory from earlier this month.
Analysts note that the price action is consistent with a “wait-and-see” sentiment among traders. “Investors are tired of news about filings,” said HOKANEWS.com’s crypto market reporter. “What they want is approval — something tangible that signals institutional access is finally here.”
From a technical standpoint, XRP has slipped below its 7-day and 30-day moving averages, suggesting short-term bearish momentum. The next support level is estimated around $2.10, with a stronger floor near $1.85 if the current selling pressure continues. On the upside, analysts expect a rebound if market optimism grows, with potential targets around $2.60 to $3.00, particularly if the ETF is greenlit this month.
Institutional Impact and Broader Implications
Should the SEC approve an XRP ETF, the implications would extend far beyond Ripple or its community of retail holders. Institutional investors — from hedge funds to pension managers — could gain a regulated pathway into one of crypto’s most liquid assets without the technical barriers of holding XRP directly.
That shift could significantly enhance liquidity and reduce volatility, while legitimizing XRP as a mainstream financial instrument. It would also mark a new chapter in crypto’s integration with traditional markets, demonstrating that digital assets can coexist with regulatory oversight rather than operate in defiance of it.
According to several analysts, an XRP ETF could spark a surge in institutional participation similar to what the Bitcoin ETF market experienced earlier this year. Within weeks of approval, Bitcoin ETFs saw billions of dollars in inflows, reshaping the asset’s perception from a speculative tool to a viable investment product.
If XRP follows a similar trajectory, it could reinforce Ripple’s position as a key player bridging crypto and traditional finance — particularly given its partnerships with global payment firms and central banks exploring cross-border settlement solutions.
November: The Month to Watch
The next key moment for investors arrives mid-November, when the SEC could issue responses to the latest batch of filings. Market speculation suggests that at least one issuer — likely Franklin Templeton or Bitwise — might receive preliminary clearance.
If that happens, the first U.S. spot XRP ETF could launch before December, setting off a new wave of investor enthusiasm and potentially stabilizing XRP’s price in the mid-term. On the other hand, continued delays could fuel skepticism, keeping prices anchored near $2 for now.
Either way, the market’s patience is wearing thin. “Every delay is another missed opportunity,” said a trader interviewed by HOKANEWS.com. “There’s global demand for XRP exposure through regulated products. The U.S. just needs to catch up.”
Final Outlook
The competition between Franklin Templeton, Bitwise, and Canary Funds highlights a pivotal moment for the digital asset industry. Whether the SEC acts in November or delays again, one thing is clear: the appetite for regulated crypto ETFs isn’t fading. It’s accelerating.
With investors seeking safer, institution-backed ways to access cryptocurrencies, the XRP ETF represents more than just another product launch — it’s a test case for how traditional markets will adapt to blockchain-based assets.
As the year draws to a close, all eyes are on Washington. The SEC’s decision could define not only the fate of XRP ETFs but also the future direction of digital asset regulation in the United States.
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