Franklin Templeton disclosed holdings of 293.11 million XRP tokens valued at approximately $439.7 million in a November 13 SEC filing, revealing a 30% quarterly increase in the asset manager's cryptocurrency exposure. The Franklin XRP ETF (XRPZ) added 67.7 million tokens during the third quarter ending September 30, driven by share creations and in-kind contributions. Despite the accumulation, the fund's XRP investments remain $61.76 million below their cumulative acquisition cost, reflecting continued volatility in digital asset valuations. The disclosure provides a snapshot of institutional XRP positioning through regulated exchange-traded products, with Franklin using Coinbase Custody Trust Company to safeguard the tokens.
Franklin XRP ETF Adds 67.7 Million Tokens in Q3
Franklin's XRP holdings increased from 225.37 million tokens on July 1 to 293.11 million by September 30, representing growth of approximately 30.1%. According to the November 13 SEC filing, the NYSE Arca-listed fund purchased 26.6 million XRP for share creations and received another 41.25 million tokens through in-kind contributions. Approximately 108,834 XRP were sold to cover expenses during the quarter. No XRP sales or in-kind distributions related to shareholder redemptions were recorded during the period. The fund's outstanding ETF shares increased to 27 million by September 30, compared with 14.7 million at the end of March.
Franklin's XRP Holdings Remain $61.8M Below Cost
The filing reports a total XRP cost basis of $501.43 million against a September 30 fair value of $439.67 million, leaving a difference of approximately $61.76 million, or 12.3%. This does not represent a realized loss from selling the underlying holdings. The fund recorded $112.73 million in unrealized appreciation during the third quarter, demonstrating how XRP's valuation improved within the period despite remaining below its overall cost basis. Franklin's net asset value reached $439.61 million, equivalent to $16.28 per ETF share.
SEC Filing Shows September 30 Data Amid Recent Market Shifts
Franklin's disclosure covers the quarter ending September 30 and does not reflect current market conditions or November activity. The fund uses Coinbase Custody Trust Company to safeguard its XRP, while BNY Mellon provides administration, transfer-agent services, and cash custody. The annual sponsor fee is 0.19%. The September 30 valuation cannot be treated as the fund's current market value given subsequent XRP price movements.
FAQ
How much XRP does Franklin Templeton's ETF hold?
Franklin Templeton's XRP ETF held 293.11 million XRP tokens as of September 30, valued at approximately $439.7 million according to the November 13 SEC filing.
Why are Franklin's XRP holdings below cost?
The fund's XRP cost basis is $501.43 million, while the September 30 fair value was $439.67 million, creating a $61.76 million difference. This reflects unrealized depreciation and does not represent a realized loss from selling tokens.
