In a groundbreaking move, the financial sector is witnessing heightened interest in XRP-based Exchange-Traded Funds (ETFs) as top asset managers like Franklin Templeton, Grayscale, and Canary Capital make their mark. The continued rise in adoption signals a bright future for blockchain-based digital assets.
Record-Breaking Inflows in November
On November 24th, Spot XRP ETFs recorded net inflows of $164 million, marking the second-largest single-day total since their launch. Notably, Grayscale’s GXRP ETF pulled in $67.36 million, while Franklin Templeton’s newly launched XRPZ ETF brought in $62.59 million on its debut day. The positive momentum extended for seven consecutive days of inflows, reflecting strong investor confidence.
Franklin Templeton’s XRPZ ETF: A New Opportunity
Franklin Templeton debuted its XRP ETF under the ticker “XRPZ” on NYSE Arca. The product offers investors a regulated avenue to gain exposure to XRP, the native token of the XRP Ledger. Speaking about the launch, David Mann, Franklin Templeton’s Head of ETF Product and Capital Markets, emphasized that XRPZ allows for an innovative way to capitalize on the cryptocurrency market.
According to NYSE Arca data, more than 768,000 shares of the XRPZ ETF were traded, signaling a robust demand for the product. Franklin Templeton’s previous successes with crypto index funds and Bitcoin/Ether ETFs have set the stage for the XRPZ ETF’s impressive performance.
Industry Comparisons and Future Projections
Crypto analyst Chad Steingraber likened the current surge in XRP ETFs to the meteoric rise of Bitcoin-based ETFs. He predicted that XRP ETFs could witness cumulative billion-dollar inflow days within months of their launch. This trend indicates the growing maturity of the digital asset market and increasing trust among institutional and retail investors.
Ripple’s Legal Battle: A Resolved Roadblock
The launch of XRP-focused ETFs follows Ripple’s legal resolution with the U.S. Securities and Exchange Commission (SEC). After years of contention, Ripple settled in August for $125 million. With regulatory clarity, companies like Franklin Templeton and Grayscale are now capitalizing on the opportunity to introduce XRP-based financial products.
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The Bottom Line
XRP ETFs are inspiring renewed enthusiasm among investors, pushing XRP’s price up by over 8% in just 24 hours following major ETF launches. With regulated investment options now readily available, the future of blockchain-based assets is brighter than ever.
