Franklin Templeton, one of the largest global asset managers, has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to introduce an XRP Exchange-Traded Fund (ETF). This filing is part of a larger wave of institutional interest in cryptocurrency and altcoins, marking a significant milestone in the growing momentum around altcoin ETFs in 2025. With 17 filings already in place for an XRP ETF, Franklin Templeton’s move signals a shift in the regulatory environment, which is becoming increasingly receptive to cryptocurrencies.

This filing follows Franklin Templeton’s earlier filing for a Solana (SOL) ETF, further solidifying the firm’s growing interest in the digital asset space. The firm’s current crypto offerings already include spot Bitcoin (BTC) and Ethereum (ETH) ETFs, and the introduction of an XRP ETF would diversify their crypto portfolio. The interest in altcoin ETFs has surged since President Donald Trump’s return to office, prompting a favorable shift in the regulatory landscape and boosting institutional interest in a broader range of cryptocurrencies.

Altcoin ETFs Gaining Ground

Franklin Templeton’s foray into the XRP ETF race places it alongside other major asset managers like 21Shares, Canary Capital, Grayscale, WisdomTree, and Bitwise. These firms have already submitted applications for similar cryptocurrency-focused products. To compete effectively, Franklin Templeton must submit a 19b-4 filing with the SEC, which would formally begin the regulatory review process. The SEC’s approval of such filings will be a key development for the cryptocurrency space.

Currently, three of these firms—21Shares, Bitwise, and Grayscale—have seen their filings acknowledged by the SEC. This puts them ahead in the queue for approval, while Franklin Templeton’s filing remains in the early stages. Once acknowledged by the SEC, the filing will be published in the Federal Register, triggering the clock for the Commission to either approve or reject the application.

The Surge in Market Optimism

The filing by Franklin Templeton has contributed to a surge in market optimism regarding the approval of a Ripple ETF in 2025. According to Polymarket data, 75% of bettors now predict a positive outcome for the XRP ETF approval, marking a 5% increase in optimism following the Franklin Templeton filing. In addition to this, XRP has seen a 3.62% increase in value over the past 24 hours, outpacing both Bitcoin and Ethereum’s daily price changes. The broader cryptocurrency market is also experiencing bullish momentum, indicating that institutional interest and market confidence are growing.

Other Altcoins’ ETF Applications

Beyond XRP, other altcoins are also seeing strong momentum for ETF applications. As of now, the approval odds for a Solana ETF stand at 87%, while a Cardano ETF has a 69% chance of approval. Dogecoin’s ETF is also seeing a high likelihood of approval at 68%. These figures reflect a growing market confidence that altcoins are increasingly seen as viable investment assets. The increasing optimism surrounding altcoin ETFs suggests that more digital assets will soon become available to institutional investors.

Moreover, Cboe BZX recently filed with U.S. regulators to integrate staking into Fidelity’s Ether ETF, which further reflects a growing interest in expanding the functionality of cryptocurrency ETFs. This move signals that crypto ETFs might evolve beyond the basic spot holdings, potentially offering new ways for investors to gain exposure to digital assets.

Conclusion

Franklin Templeton’s filing for an XRP ETF is a significant development in the broader trend of institutional adoption of cryptocurrency and altcoins. With rising filings for Solana, Cardano, and Dogecoin ETFs, there is growing confidence in the regulatory acceptance of altcoin ETFs. If approved, these ETFs will provide investors with a broader range of options for gaining exposure to digital assets. The filing also highlights the potential of altcoin ETFs to carve their own path in the market, alongside Bitcoin and Ethereum, making cryptocurrency investments more accessible and attractive to institutional players.