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The SEC reviews Franklin XRP ETF proposal, taking a key step forward.
Gate News bot message, the U.S. Securities and Exchange Commission (SEC) announced on June 17 that it has initiated procedures to evaluate the proposed rule change regarding the listing and trading of the Franklin XRP ETF submitted by Cboe BZX Exchange Inc.
This proposed change was initially submitted on March 13, 2025, seeking approval for commodity trust shares under BZX Rule 14.11(e)(4). The SEC previously extended the review period on April 29, but has now initiated the formal process under Section 19(b)(2)(B) of the Securities Exchange Act of 1934.
As stated in the order: "The Commission is initiating proceedings under Section 19(b)(2)(B) of the Act to determine whether to approve or disapprove the proposed rule change."
The ETF is managed by Franklin Holdings LLC and aims to reflect the performance of the XRP price before fees. Coinbase Custody Trust Company LLC will act as the custodian of XRP, and its valuation will be determined daily based on the CF XRP-USD Reference Rate from the Chicago Mercantile Exchange (CME) - New York variant. Stock trading, whether for issuance or redemption, will be conducted in cash or physical form in units of 50,000 shares.