# Franklin XRP Trust

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Franklin XRP Trust).

## Overview

Franklin XRP Trust is a Delaware statutory trust that issues the Franklin XRP ETF, a passive exchange-traded product designed to provide investors with price exposure to XRP through the securities markets. The Trust does not actively manage XRP holdings; instead, it holds XRP and seeks to reflect its market price, less expenses, with shares traded on NYSE Arca under the ticker XRPZ.

## Products & services

• Franklin XRP ETF (XRPZ)
• Creation and redemption of ETF shares in 50,000-share units
• Passive XRP price exposure via listed securities
• Custody/holding of XRP for the fund structure
• Daily NAV and Principal Market NAV calculation

- **Listed XRP ETF** (100%) — The sole product is an exchange-traded fund that holds XRP and tracks its price less fees and liabilities.

- Franklin XRP ETF (XRPZ)
- Creation and redemption of ETF shares in 50,000-share units
- Passive XRP price exposure via listed securities
- Custody/holding of XRP for the fund structure
- Daily NAV and Principal Market NAV calculation

## Customers

The Trust’s customers are investors who want XRP exposure without directly buying, storing, or transferring the digital asset themselves. Shares are created and redeemed only by Authorized Participants, while the end investors are typically market participants accessing XRPZ on NYSE Arca through brokerage accounts. The product is aimed at investors seeking a regulated, exchange-traded wrapper around XRP price exposure.

- **Retail brokerage investors** (primary) — Buy XRPZ on exchange for simple, listed exposure to XRP without managing wallets or crypto platforms.
- **Institutional investors** (primary) — Use the ETF wrapper for operational simplicity, custody convenience, and portfolio allocation to XRP.
- **Authorized Participants** (secondary) — Create and redeem 50,000-share units to keep market price aligned with NAV.

- Retail and institutional investors buying XRP exposure through brokerage accounts
- Authorized Participants that create and redeem ETF blocks
- Investors seeking XRP exposure without direct wallet or exchange handling
- Market participants using a regulated listed vehicle instead of spot crypto venues

## Geography

The Trust is organized in the United States as a Delaware statutory trust and its shares trade on NYSE Arca. Its economic exposure is global because XRP is a digital asset priced in international markets, but the operating structure, reporting, and fee arrangements are U.S.-based.

- United States domicile and SEC reporting structure
- NYSE Arca listing provides U.S. market access
- XRP pricing reflects global crypto market activity
- Sponsor fee and NAV calculations are denominated in U.S. dollars

## Strategy

The Trust’s strategy is to offer a low-friction, passive vehicle for XRP exposure through a familiar exchange-traded format. It relies on daily valuation, creation/redemption mechanics, and a fee waiver period to support early asset gathering and trading liquidity.

- **Build ETF liquidity and market acceptance** (short-term) — Trading depth and tight spreads are essential for an exchange-traded crypto product.
- **Attract assets through temporary fee relief** (short-term) — Lower fees can improve early adoption and help the fund scale assets under management.
- **Preserve passive, rules-based XRP exposure** (medium-term) — The product proposition depends on tracking XRP price rather than discretionary management.

- Provide XRP exposure through a regulated ETF wrapper
- Use passive structure rather than active crypto management
- Support liquidity through creation/redemption by Authorized Participants
- Use fee waivers to attract early assets and trading volume
- Maintain valuation discipline through principal market pricing

## Risks

The Trust is exposed to XRP price volatility, which directly drives NAV and share performance because the fund is a passive holder of the asset. It also faces market-structure risks common to crypto ETPs, including trading discounts/premiums, liquidity constraints, valuation disputes, and regulatory uncertainty around digital assets and exchange-traded products.

- **XRP market price volatility** [high] — The Trust holds XRP passively, so asset price moves flow directly into NAV and share price.
- **Premium/discount to NAV** [medium] — ETF shares trade on an exchange and may diverge from underlying XRP value.
- **Regulatory and legal uncertainty for digital assets** [high] — Changes in crypto regulation or exchange-traded product rules could affect operations or demand.
- **Valuation and principal market determination** [medium] — Fair value depends on identifying the principal market and using a reliable end-of-day price.

- XRP price volatility directly affects NAV and investor returns
- Shares can trade at premiums or discounts to NAV
- Crypto market liquidity and custody conditions can disrupt pricing
- Regulatory changes could affect XRP access or ETF operations
- Authorized Participant concentration can affect creation/redemption flow

## Accounting

The main accounting judgment is fair value measurement of XRP, which the Trust carries at fair value under GAAP using a principal market price rather than the benchmark index used for NAV purposes. Because the fund is a passive vehicle with daily valuation, small differences in pricing source, timing, or market selection can affect reported assets and NAV per share. Sponsor fee accruals, fee waivers, and creation/redemption activity also affect period results and comparability.

- **Fair value measurement of XRP** — Affects reported assets, net asset value, and period-to-period comparability
- **NAV versus Principal Market NAV** — Investors must reconcile reported fund economics with the accounting basis
- **Sponsor fee accrual and waiver** — Affects operating expenses and net asset value

- Fair value of XRP depends on principal market pricing under ASC 820
- NAV uses the index, but GAAP financials use fair value measurement
- Daily valuation timing can create differences versus market close prices
- Sponsor fee accruals and waivers affect expenses and net results
- Creation/redemption activity changes shares outstanding and NAV per share

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*Last updated: 2026-04-28T20:08:59.858875+00:00*