SEC’s Hilarious XRP ETF Review: Will It Fly or Flop? 😂

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Hold onto your wallets, folks! The SEC is taking a good, hard look at the Franklin XRP ETF, and let me tell you, it’s like watching a soap opera unfold! 📺💰 With institutional confidence in XRP rising faster than a cat on a hot tin roof, this review is a key step toward potential approval—or a spectacular flop! 🎭

SEC’s Comedy Show: Reviewing the Franklin XRP ETF Proposal as Confidence Grows in XRP Market Structure

On June 17, the U.S. Securities and Exchange Commission (SEC) announced it’s kicking off a review of a proposed rule change by Cboe BZX Exchange Inc. for the Franklin XRP ETF. Yes, folks, it’s like a reality show, but with more paperwork! 📄😅

This proposed change, filed on March 13, 2025, is seeking approval under BZX Rule 14.11(e)(4) for Commodity-Based Trust Shares. The SEC had previously extended the review timeline on April 29, but now they’re opening formal proceedings under Section 19(b)(2)(B) of the Securities Exchange Act of 1934. As the order states:

The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act to determine whether the proposed rule change should be approved or disapproved. Spoiler alert: It’s a nail-biter! 🎬

The ETF, managed by Franklin Holdings LLC, aims to mirror the performance of XRP’s price—before expenses, of course! Because who doesn’t love a good surprise? 🎉 Coinbase Custody Trust Company LLC will be the XRP custodian, and they’ll determine valuation daily using the CME CF XRP-Dollar Reference Rate—New York Variant. Sounds fancy, right? 💼💵

A central feature of the proposal is the composition of the fund’s assets. The filing states:

The Fund will hold only XRP, cash, and cash equivalents. Because who needs diversity when you can have a one-trick pony? 🐴💸

The sponsor has emphasized that these components are consistent with the ETF’s investment objective and structure. But wait, there’s more! The SEC’s notice outlines concerns around compliance with Section 6(b)(5) of the Exchange Act, which demands rules that deter fraud and safeguard public interest. They’re asking for public feedback, stating: “In particular, the Commission seeks comment on whether the proposal to list and trade shares of the Trust, which would hold XRP, is designed to prevent fraudulent and manipulative acts and practices or raises any new or novel concerns not previously contemplated by the Commission.” Interested parties are invited to submit written comments via the SEC’s official channels for further assessment. So, get your pens ready, folks! 🖊️✉️

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2025-06-18 02:57