Momentum for mainstream access to digital assets took another step forward this week as a major asset manager submitted an amended S-1 registration for a spot XRP exchange-traded fund. The Franklin XRP Trust, updated on November 4, 2025, introduces a targeted regulatory refinement compared to prior drafts—an adjustment designed to align the product more closely with the current expectations for spot crypto ETFs.
While the market has grown accustomed to headlines around Bitcoin and Ether ETFs, an XRP product would mark a meaningful broadening of investor choice within regulated wrappers. The tone among market participants is cautiously optimistic: the amendment signals constructive dialogue with regulators and edges the category closer to potential approval.
Key Takeaways
- An amended S-1 for the Franklin XRP Trust was filed on November 4, 2025, keeping the spotlight squarely on a potential spot XRP ETF.
- The update includes a notable regulatory adjustment intended to address specific approval criteria for spot digital asset funds.
- A greenlight would expand the ETF lineup beyond Bitcoin and Ether, potentially deepening liquidity and price discovery for XRP.
- Approval still hinges on synchronized rule-change filings, robust market integrity measures, and alignment with the latest regulatory guidance.
Why This Amendment Matters
The path to approval for any spot crypto ETF has been shaped by a few recurring priorities: market surveillance, reliable pricing inputs, custody robustness, and transparent creation/redemption mechanics. The newly amended filing acknowledges this landscape and refines the trust’s framework accordingly. In short, it aims to reduce friction points that have historically slowed crypto ETF approvals.
For investors, that matters because the ETF wrapper can transform how capital accesses an asset. It enables exposure through familiar brokerage accounts, wraps institutional-grade custody around underlying holdings, and brings the discipline of daily disclosures and audited reporting to a market that otherwise requires specialized infrastructure.
What A Spot XRP ETF Could Unlock
A spot XRP ETF would hold XRP directly, tracking its price via a transparent and rules-based methodology. That structure can:
- Lower operational barriers for wealth managers and retirement platforms that prefer exchange-traded products.
- Channel liquidity through authorized participants, supporting orderly primary-market flows.
- Encourage tighter bid-ask spreads in secondary trading as market makers compete for flow in a regulated venue.
- Promote improved price discovery as reference rates and standardized disclosures gain prominence.
XRP’s core value proposition—fast settlement and low-cost transfers—already caters to high-throughput use cases. Wrapping it in an ETF could bring those use cases closer to traditional portfolios, where asset allocators can size positions, hedge, or rebalance with familiar tools.
The Road To Approval: What Typically Comes Next
For spot crypto ETFs, two tracks usually move in parallel: the issuer’s registration statement and the exchange’s rule-change proposal. The amended S-1 moves the issuer side forward. In tandem, the exchange must demonstrate that its listing rules—and the market ecosystem around the product—offer sufficient investor protections, resilient pricing, and credible surveillance over potential manipulation.
Historically, regulators have focused on:
- Data quality and reference pricing methodologies for the underlying asset.
- Surveillance and information-sharing mechanisms across venues that influence price.
- Custody architecture, including cold storage procedures and risk controls.
- Creation/redemption workflows that help the ETF track its net asset value efficiently.
The updated filing’s regulatory refinement is aimed squarely at these themes, signaling that the issuer is iterating alongside evolving guidance for digital asset products.
What To Watch From Here
- Exchange rule-change progress: Look for proposed listing standards and comment periods that align with the amended registration.
- Product mechanics: Details around authorized participants, basket handling, and cash-versus-in-kind processes can influence tracking precision.
- Custody disclosures: Clear articulation of security practices, insurance, and segregation of assets remains pivotal.
- Fee structure: Expense ratios tend to compress with competition and can materially affect long-term holders.
- Regulatory commentary: Any feedback focused on surveillance, pricing, or market integrity will be key signals for timing and odds.
Market Structure Implications
If approved, a spot XRP ETF could attract new classes of investors who prefer regulated vehicles over direct token custody. That can enhance secondary-market depth, expand derivatives hedging around a centrally quoted product, and potentially stabilize funding conditions across platforms that reference ETF-driven price signals.
The broader takeaway: a diversified menu of spot crypto ETFs supports a more mature market architecture—one that integrates crypto-native liquidity with traditional rails while upholding standardized, repeatable compliance and reporting.
Risks And Considerations
- Regulatory timelines remain uncertain; additional iterations of filings are common.
- Digital asset volatility can impact tracking, spreads, and primary-market flows during stress.
- Operational differences across custodians and pricing agents may create dispersion between issuers.
- Macro liquidity cycles and risk sentiment can overshadow product-specific fundamentals.
Bottom Line
The amended S-1 for the Franklin XRP Trust is a constructive development for investors seeking regulated access to XRP. By addressing the regulatory milestones that have defined spot crypto ETF approvals, the update moves the conversation from “if” toward “how and when.” While hurdles remain, the direction of travel is clear: crypto is steadily integrating with traditional market infrastructure, and an XRP ETF would be a significant milestone on that road.
This article is for informational purposes only and does not constitute investment advice. Digital assets are volatile and carry risk. Always conduct your own research.