Major Asset Manager Invests Heavily in XRP: Key Reasons Behind the Move

In a significant move for the cryptocurrency market, Franklin Templeton, an asset management firm managing over $1.6 trillion in assets, has made its interest in XRP prominently known. Recent insights shared via the social media platform X explain why the firm is investing heavily in XRP and promoting its Spot exchange-traded product, XRPZ. This indicates a growing confidence from institutions in XRP and the XRP Ledger.

Key Takeaways

Franklin Templeton, managing over $1.6 trillion, has publicly committed to XRP.
The firm introduced the Franklin XRP Trust (XRPZ) on the NYSE Arca, allowing easy access to XRP.
The trust is structured to simplify investment in XRP while maintaining regulated oversight.
Franklin Templeton's leadership believes in XRP's potential for efficient transactions and global value transfer.
Since its launch, XRPZ has gained significant traction, with notable inflows in comparison to other cryptocurrency ETFs.

XRP Price Recovery Attempt

Franklin Templeton’s Strategic Move into Spot XRP ETF

Franklin Templeton's entrance into the XRP ETF arena marks a substantial endorsement for the token from an established financial institution. The company launched the Franklin XRP Trust, which trades as XRPZ on the NYSE Arca, in late November. This trust provides a regulated means for investors to gain exposure to the digital asset without the specific complexities associated with direct ownership of XRP.

The trust is designed as a grantor trust, which means it holds XRP and calculates its net asset value daily using established reference rates. Custody is managed by Coinbase Custody Trust Company and administration by BNY Mellon.

Notable comments from key figures at Franklin Templeton reveal the firm’s strong belief in XRP and the XRP Ledger. Roger Bayston, the Head of Digital Assets at the firm, pointed out that the XRP Ledger is tailored for real-time, cost-effective settlements and efficient cross-border transactions. He further emphasized that the altcoin's market capitalization and its role in global value transfers make it a critical asset for investors looking for regulated exposure. This new addition of XRP complements the firm's existing digital asset portfolio, which already includes Bitcoin and Ethereum ETFs.

Founded in 1947, Franklin Templeton has built a solid reputation in equity, fixed income, and multi-asset investments globally. The company's foray into crypto ETFs, which now includes Bitcoin, Ethereum, and XRP, highlights the growing involvement of established asset managers in the cryptocurrency space.

Performance and Market Reception of XRPZ Since Launch

In 2025, several issuers were granted approval for Spot XRP ETFs, enabling both institutional and individual investors to access cryptocurrencies through regulated channels. Since launching in November, the Spot ETFs—including XRPZ—have experienced notable capital inflows.

Together, these ETFs have attracted over $1.16 billion in net inflows, showing consistent demand, especially compared to recent outflows experienced by Bitcoin and Ethereum ETFs. As for Franklin Templeton's XRPZ, it has amassed over 100 million XRP holdings, with total inflows around $242 million at the time of this report.

XRP price chart from Tradingview.com Price struggles to recover | Source: XRPUSDT on Tradingview.com