The U.S. Securities and Exchange Commission (SEC) has initiated an extended public commentary period for the proposed exchange-traded funds (ETFs) focused on XRP and Solana, a move that indicates a deepening examination of Franklin Templeton’s applications filed in March 2025. These applications are currently under review at the Chicago Board Options (Cboe) BZX Exchange.
On June 17, the SEC announced a 35-day comment window, which will prolong the decision-making process initially postponed in April. This new timeline will stretch into July, allowing for more insights and opinions from the public and industry stakeholders.
The SEC is particularly interested in understanding whether the proposed listing and trading of shares within the Trust—specifically those holding XRP—have sufficient safeguards to prevent fraudulent behaviours or if they introduce any unforeseen concerns. The agency’s inquiry is based on provisions related to fraud prevention and investor protection as outlined in Section 6(b)(5) of the Securities Exchange Act. The SEC has clarified that the commencement of this review does not imply any pre-existing conclusions about the applications’ merits.
Understanding the Proposed ETFs
The XRP ETF is designed to exclusively hold XRP and cash equivalents, with its valuation linked to the CME CF XRP-Dollar Reference Rate. Meanwhile, the Solana ETF proposal includes provisions for staking the held SOL tokens, arguing that the diminishing returns from staking should be viewed similarly to the impact of missing out on equity dividends.
The SEC has set a deadline of 21 days from the publication of their notice in the Federal Register for initial public comments, followed by an additional 14 days for counter-responses. Despite the uncertainty surrounding approval, market sentiment appears to favour a bullish outlook towards these ETF applications.
As the discussion unfolds, Franklin Templeton’s proposals signal a broader interest in the integration of cryptocurrency assets within mainstream investment frameworks.
