Franklin Templeton XRP ETF: What Investors Should Know

The Franklin Templeton XRP ETF gives investors exposure to XRP through a traditional brokerage account without purchasing or managing the cryptocurrency directly. Trading as XRPZ on NYSE Arca, the fund holds XRP and seeks to reflect its market price before fees and expenses. Its structure, costs, performance and risks matter when evaluating the investment.

What Is the Franklin Templeton XRP ETF?

The Franklin XRP ETF began operations on November 24, 2025, and trades on NYSE Arca as XRPZ. It provides exchange-traded exposure to XRP's price.

XRP is the digital asset associated with the XRP Ledger, a blockchain network for payments and transfers. Unlike an equity ETF, XRPZ holds the cryptocurrency directly.

The fund is structured as a statutory trust. Shares represent beneficial interests in the trust, not direct ownership of XRP in an investor-controlled wallet. Shareholders cannot use the fund's tokens to make payments or transfer assets on the XRP Ledger.

Investors can buy shares through a brokerage account without managing private keys. XRPZ is registered under the Securities Act of 1933, not as an investment company under the Investment Company Act of 1940, so it differs from conventional registered funds.

How Does XRPZ Work?

XRPZ follows a passive strategy and seeks to track the CME CF XRP-Dollar Reference Rate – New York Variant. This benchmark is used to value the fund's XRP holdings and calculate its net asset value (NAV).

The fund does not actively trade XRP or use leverage. Its NAV reflects assets less liabilities and accrued expenses and is generally calculated each business day.

Because XRP trades around the clock but XRPZ trades during stock exchange hours, their prices can temporarily diverge.

XRP Holdings and Custody

Coinbase Custody Trust Company is the XRP custodian. BNY provides cash custody, administration and transfer agent services, while CSC Delaware Trust Company serves as trustee.

Coinbase Custody safeguards the XRP, while BNY supports cash management, NAV administration and shareholder records. The arrangement avoids personal key management but not cybersecurity or service-provider risks.

The fund's structure and service providers are detailed in its SEC registration statement and prospectus.

XRPZ Ticker, Fees and Key Facts

XRPZ is listed on NYSE Arca, began operations on November 24, 2025, and uses the CME CF XRP-Dollar Reference Rate – New York Variant as its benchmark.

• Underlying asset: XRP
• Gross sponsor fee: 0.19%
• Net sponsor fee: 0.19%
• Inception date: November 24, 2025

A 0.19% annual sponsor fee equals approximately $1.90 per year for every $1,000 invested, assuming the investment value remains unchanged. It is deducted from fund assets, rather than billed separately to each shareholder.

Additional costs can include commissions, spreads and premiums or discounts to NAV.

Latest Fund Size and Holdings

As of November 4, 2026, Franklin Templeton reported approximately $403.94 million in net assets, holdings of about 310.43 million XRP and a NAV of $14.12 per share. Both figures change with XRP's price and investor activity.

Investors can check the official Franklin XRP ETF page for updated holdings, performance and documents.

How to Buy and Sell XRPZ Shares

Investors can generally buy XRPZ through a brokerage account that supports NYSE Arca securities, placing orders during exchange hours under their broker's rules.

A market order seeks the best available price; a limit order sets the buyer's maximum or seller's minimum. A wide bid-ask spread increases costs, particularly when liquidity is low or XRP is volatile.

How Institutional Creation and Redemption Work

Retail investors usually trade existing shares on the secondary market rather than exchanging shares directly with the trust for XRP.

Authorized participants can create or redeem blocks of 50,000 shares, known as Creation Units, or multiples of that amount, through transactions involving XRP and/or cash. This process helps link XRPZ's market price to the value of its underlying assets.

Creating shares may be attractive when the ETF trades above NAV; redemptions may be attractive when it trades below NAV. The mechanism supports pricing efficiency but cannot guarantee NAV trading; volatility or operational disruption can widen premiums and discounts.

Understanding XRPZ Performance

XRPZ's performance is primarily driven by XRP's market value. A rise in XRP would generally lift the fund's NAV before expenses and tracking differences; a decline would generally reduce it. The fund does not generate regular income simply by holding XRP.

NAV Returns Versus Market Price Returns

NAV returns measure changes in the trust's asset value per share. Market price returns measure changes in the prices at which XRPZ trades. They can differ because of supply and demand, spreads, liquidity and premiums or discounts to NAV.

A buyer paying a premium may lose if it narrows, even when XRP is stable.

Recent Performance Figures

Franklin Templeton reported a negative 34.05% NAV return since inception through September 30, 2026. Its product page later reported a year-to-date total return at NAV of negative 28.47% as of November 4, 2026.

The figures cover different periods and are not forecasts. They show that an exchange-traded structure does not protect investors from losses in XRP. Expenses, cash balances, benchmark timing and market conditions can also affect tracking results.

How XRPZ Compares With Other XRP ETFs

Franklin Templeton competes with providers including Bitwise, Canary Capital, Grayscale and 21Shares, which also offer exchange-traded XRP exposure. Their products can differ in fees, custody, fund size and trading conditions.

XRPZ's 0.19% sponsor fee is one comparison point, but the lowest advertised fee does not automatically make a fund the best choice. Investors should also examine:

• Assets under management: Larger funds may attract institutional participation, but size alone does not establish quality.
• Trading volume: Higher activity can make larger orders easier to execute.
• Bid-ask spreads: Narrower spreads can lower entry and exit costs.
• Custody: Investors should know which institutions safeguard the assets.
• Tracking: Differences between NAV and market price returns affect actual results.
• Fees: Temporary waivers and other expenses matter alongside sponsor fees.

Small annual fee differences can accumulate over a long holding period. However, stronger liquidity or narrower spreads may outweigh a modest difference in sponsor fees.

What Could Drive Demand for XRPZ?

Demand for XRPZ depends on developments in traditional finance and the broader cryptocurrency market.

Institutional Interest in XRP

Exchange-traded products make cryptocurrency exposure easier to add to traditional portfolios. Advisers, wealth managers and institutions can access XRP through brokerage infrastructure without managing wallets or private keys.

This accessibility could broaden the investor base, but institutional adoption is not guaranteed. ETF inflows can indicate interest, yet rising assets do not prove that XRP's price will increase: existing holdings may also appreciate.

XRP Ledger Adoption and Market Activity

Investors may monitor payment applications, cross-border transfers, liquidity, tokenisation and institutional partnerships across the XRP Ledger ecosystem. Stronger activity could support interest in XRP, but network usage does not necessarily translate directly into a higher token price.

Regulatory Developments

Changes in digital asset classifications, custody requirements and rules for exchange-traded products may influence institutional participation. Greater predictability could encourage investment, while restrictions or legal uncertainty could weaken confidence.

Risks Investors Should Understand Before Buying XRPZ

XRPZ provides brokerage-based access to XRP, but its exchange-traded structure does not remove cryptocurrency investment risks.

1. XRP Price Volatility

XRP can move sharply because of investor sentiment, macroeconomic developments, regulation and liquidity. Since XRPZ concentrates its exposure in one cryptocurrency, it lacks the diversification of a broad stock or bond ETF. A sharp XRP decline can cause significant shareholder losses.

2. Custody and Operational Risks

Institutional custody reduces the need to manage private keys but creates dependence on third-party providers. Cyberattacks, security breaches, operational failures or counterparty disruptions could affect the fund's assets or operations. Insurance may not cover every potential loss.

3. Regulatory and Legal Risks

XRPZ is registered under the Securities Act of 1933, but the trust is not registered under the Investment Company Act of 1940. Investors should not assume it has the same protections as conventional registered investment companies. Registration is not an SEC endorsement or investment recommendation.

Changes in cryptocurrency regulation, tax rules or custody requirements could affect the fund's operations, demand and the value of XRP.

4. Premium, Discount and Liquidity Risks

XRPZ can trade above or below NAV. Buyers who pay a premium may lose if it narrows, even if XRP remains relatively stable. During market stress, spreads may widen and large orders may be harder to execute at preferred prices.

5. Forks, Airdrops and Tax Considerations

Owning XRPZ does not provide every potential benefit of holding XRP directly. The prospectus says the fund will not acquire certain incidental rights or related assets from events such as blockchain forks and airdrops; these assets are not included in NAV.

The trust intends to be treated as a grantor trust for U.S. tax purposes, although the prospectus acknowledges uncertainty. XRP sales to cover fees may create taxable events even without a cash distribution.

Tax consequences depend on individual circumstances. Investors should review the prospectus and seek qualified tax advice. Shares are not insured or guaranteed by the FDIC or another government agency.

Who Should Consider the Franklin Templeton XRP ETF?

XRPZ may suit investors who want XRP exposure through traditional securities trading and prefer not to manage cryptocurrency wallets or private keys.

• Brokerage investors: Those who prefer trading securities through existing investment accounts.
• Long-term XRP investors: Those seeking price exposure without managing digital assets directly.
• Cost-conscious investors: Those comparing spot XRP products and the 0.19% sponsor fee.
• Portfolio diversifiers: Those considering a limited crypto allocation and able to tolerate substantial volatility.

XRPZ may not suit investors seeking stable returns, regular income or capital preservation. It is also less appropriate for people who want to use XRP for payments, transfer tokens between wallets or participate directly in blockchain applications.

Before buying, investors should compare current holdings, NAV, volume, spreads and the prospectus with competing products to assess whether XRPZ fits their objectives and risk tolerance.