The Cboe BZX Exchange has recently requested the U.S. SEC to allow listing as well as trading of Franklin $XRP ETF. Submitting a proposed rule change, the Cboe BZX Exchange seeks an approval for the listing and trading of Franklin $XRP ETF within the wider Franklink $XRP Trust Series. The platform has shared the respective rule filing on its official web portal.

Cboe BZX Exchange Submits Proposed Rule Change for $XRP ETF

The proposed rule change filing comes after the established procedure of the SEC to approve exchange-traded products, especially commodity-based trust shares. Interestingly, the Franklin $XRP ETF is excluded from the list of investment companies in line with 1940’s Investment Company Act. Additionally, it is not even considered a commodity pool as the Commodity Exchange Act suggests.

Following its launch in 2012, $XRP has gained significant popularity and now stands among top digital assets. With a staggering market cap of more than $300B, it is used by a vast majority to trade funds. The proposed ETF intends to hold cash, $XRP, and cash equivalents, valuing the shares regularly. For this, it will take into account the CME CF XRP-Dollar Reference Rate. It is a standard showing the trading operations across top $XRP trading entities like LMAX Digital, Kraken, Coinbase, and Bitstamp. The valuation procedure aims to prevent price manipulation.

Trending Now: Ripple Becomes First UAE Licensed Blockchain Payment Provider

As the platform has submitted the proposed rule change, SEC will determine the approval based on its review. This will guarantee that the listing avoids any manipulative and fraudulent practices, promoting equitable and just market practices and investor protection. In addition to this, the Cboe BZX Exchange considers the $XRP trading’s fragmented and decentralized nature as a beneficial factor. It reportedly decreases the potential price manipulation.

Delivering Transparent and Regulated Exposure to $XRP

According to the Cbo BZX Exchange, the Franklin $XRP could deliver a transparent and regulated $XRP exposure to the U.S. investors. Moreover, it also intends to minimize risks, such as increased management fees and price volatility, posed by over-the-counter (OTC) $XRP funds. Furthermore, the proposal will bring heightened competition among listing venues and market participants.