Franklin Templeton XRP ETF Monthly Increase Exceeds 100%, Why Are Institutions Collectively Betting on XRP

Franklin Templeton’s XRP Spot ETF holdings have doubled in value within just one month, growing from $100 million on December 1st to $215 million on December 31st. Behind this rapid growth reflects a shift in traditional financial institutions’ attitude towards digital assets like XRP, as well as a redefinition of the cross-border payments sector.

Data on Rapid ETF Holding Growth

As of December 31, 2025, Franklin Templeton’s XRP Spot ETF (XRPZ) has reached a substantial size:

This growth rate is quite fast. From surpassing $100 million on December 1st to nearly $220 million at the end of the month, indicating that the per-share value has doubled within a month. This is not small-scale capital inflow but institutional-level concentrated allocation.

The Logic Behind Institutional Accumulation

Why XRP, and why now

Franklin Templeton is not an isolated decision-maker. According to relevant information, by the end of December, multiple investment funds including Grayscale Capital and Canary Capital launched XRP trading products. These institutional ETFs attracted a total investment of about $1.15 billion.

This phenomenon indicates several points:

• Regulatory Environment Improvement: The approval of XRP spot ETFs in the US reflects a shift in regulatory attitude.
• Clear Application Scenarios: As the native asset of the XRP Ledger, XRP has clear value in cross-border payments, a feature not shared by Bitcoin or Ethereum.
• Recognition of Cost Advantages: Compared to SWIFT, XRP Ledger offers faster transaction speeds and lower fees, making it attractive to financial institutions.

From Price to Investor Confidence

XRP is currently trading at $1.85, ranked 5th by market cap, with a market share of 3.77%. Although it has fallen 8.19% over the past 30 days, this has not dampened institutional investors’ enthusiasm for allocation.

Jeffrey Kendrick, Head of Global Digital Asset Research at Standard Chartered, has set a target price of $8 for 2026, implying a potential increase of 330%. While this is a quite optimistic forecast, it reflects traditional financial institutions’ recognition of XRP’s long-term prospects.

New Perspectives from Institutional Investors

Ripple executives’ responses are quite telling

According to relevant information, Reece Merrick, Managing Director of Ripple Middle East and Africa, responded positively to Franklin Templeton’s focus. Roger Bayston, Head of Digital Assets at Franklin Templeton, described XRPL as “a payments-first blockchain,” a very precise positioning—it is not competing for the general-purpose computing platform status but focusing on solving the urgent need for cross-border payments.

From Asset Custody to Institutional Demand

One core reason multiple institutions are launching XRP ETFs is to address custody risk issues. Traditional institutional investors have concerns about direct holdings of digital assets in terms of technology and security. ETF products, through professional custody, reduce these risks, allowing institutions to allocate more confidently.

Personal View: This Growth May Continue

Based on data and logic, the growth of Franklin Templeton’s XRP ETF does not seem like short-term speculation:

• It is a product at the institutional level, attracting funds with long-term allocation needs.
• XRP’s application scenarios (cross-border payments) are real and not just conceptual.
• Multiple institutions launching related products simultaneously suggest this is not an isolated decision but industry consensus.
• Participation by traditional financial institutions enhances the credibility backing of this asset class.

Of course, this does not mean prices will rise straight up. Markets will always have fluctuations, but considering capital flows and institutional attitudes, the probability of XRP attracting more institutional allocations in 2026 is quite high.

Summary

The one-month doubling of Franklin Templeton’s XRP ETF mainly reflects three phenomena:

First, the improved regulatory environment in the US for spot XRP products has opened compliant channels for institutional investment.

Second, the value of the cross-border payments sector is being reassessed, and XRP’s positioning as a professional payment tool has gained recognition from traditional financial institutions.

Third, institutional investors are systematically allocating to this asset class, driven not by retail sentiment but by rational asset allocation decisions.

Future focus should be on whether this institutional-level allocation will further expand and on the actual progress of XRP Ledger in cross-border payments. These factors are more likely to determine XRP’s long-term prospects than short-term price fluctuations.