Crypto: XRP price jumps 8% thanks to new ETFs

Franklin Templeton launched an ETF backed by XRP on the NYSE Arca on Monday. This event marks an important step in the integration of altcoins into regulated markets. While attention is focused on Bitcoin ETFs, this initiative signals a broadening institutional interest. After the dispute between Ripple and the SEC, this launch could pave the way for other cryptos hitherto on the fringes of traditional markets.

Franklin Templeton enters the XRP arena with a regulated ETF

As the crypto fell below $2, Franklin Templeton officially launched this Monday, November 24, its ETF backed by XRP on the NYSE Arca, under the ticker XRPZ. The announcement marks the arrival of a new traditional player in the regulated altcoins segment.

In a statement, David Mann, head of ETF and capital markets products at Franklin Templeton, said declared : “XRPZ offers investors a convenient and regulated way to access a crypto that plays a fundamental role in the global settlement infrastructure, with the transparency and oversight that an ETF offers”.

The stated objective is to offer an institutional entry point to XRP, within a framework consistent with the standards of the American financial market.

The launch of XRPZ comes against a backdrop of coordinated dynamics around financial products linked to XRP. On the same day, Grayscale introduced its XRP Trust ETF (GXRP), while Bitwise and Canary Capital are also in the running with their own vehicles. Although official capital inflow data for Franklin Templeton are not yet available, the first activity indicators are revealing:

• 768,692 XRPZ shares were traded on NYSE Arca during the first trading hours, according to market data;

• XRP price jumped 8.25% over 24 hours;

• Bitwise reported approximately $118 million in inflows to its XRP ETF over the previous week;

• This launch follows other initiatives from Franklin Templeton, including products backed by Bitcoin, Ether, and a crypto-indexed fund.

By bringing these elements together, we are witnessing a gradual institutionalization of XRP, which, until then, was still a controversial asset in the American crypto landscape.

From Ripple trial to regulation: a shift for XRP

The launch of XRPZ cannot be read independently of the legal context that has surrounded Ripple for almost five years. Indeed, this new ETF exposure comes just a few months after the conclusion of the dispute between Ripple and the SEC, initiated in December 2020.

Last March, the commission dropped the charges under a new administration, and the case formally closed in August with a $125 million settlement, paving the way for XRP to be rehabilitated in the US market. The SEC's approval of this ETF product, necessary for its listing on the NYSE Arca, marks a turning point in the institutional perception of XRP as a legitimate asset.

This regulatory development appears to have been the catalyst for a strategic reconfiguration for several asset managers. While Franklin Templeton had already launched products indexed to Bitcoin and Ether, as well as a global crypto fund, the integration of XRP marks a desire to broaden the scope of ETFs to less consensual cryptos. Far from being a trivial choice, this movement could pave the way for the emergence of new ETFs based on alternative blockchains such as Solana, Avalanche or Stellar, subject to regulatory clarification.

The arrival of the Franklin Templeton ETF strengthens the legitimacy of XRP on traditional markets, reviving the hope of a return to $4 for XRP, a symbolic objective for a crypto in search of rehabilitation after years of regulatory turbulence.