Franklin Templeton Backs Proposed XRP and Bitcoin ETF in Japan

• Franklin Templeton Backs XRP ETF with SBI in Japan
• Proposal includes ETFs with Bitcoin, XRP, and gold
• FSA considers regulatory change for cryptocurrency ETFs

Franklin Templeton, a global asset manager with over ¥300 trillion under management, is supporting a proposal by SBI Holdings to launch two crypto index funds in Japan, including an ETF focused on XRP and Bitcoin. The initiative marks the first formal application for a spot ETF for these assets in the country.

SBI just filed for a Bitcoin and XRP ETF in Japan and this is way bigger than most people realize. We're talking about a $214B financial powerhouse that's been backing XRP for years through Ripple partnerships, now pushing for regulated exposure on the Tokyo Stock Exchange. If… https://t.co/LXa02kzOX5

— Michael (@Michael1859668) August 7, 2025

The funds were detailed on August 1st in SBI investor materials. One product offers direct exposure to XRP and Bitcoin in a single vehicle, while the other combines up to 49% digital assets with gold, diversifying risk with a traditional asset.

This move follows the formalization of a joint venture between SBI and Franklin Templeton in July, aimed at developing regulated digital financial products. Franklin Templeton will contribute infrastructure and compliance expertise, leveraging its experience with over 100 ETFs listed in various markets.

The proposal comes at a time of regulatory review in Japan. The Financial Services Agency (FSA) is discussing the reclassification of cryptoassets as financial instruments and studying a new tax model, which provides for a flat 20% tax rate on cryptocurrency profits. The change would allow cryptocurrency ETFs to be approved within the existing legal framework.

SBI has long-standing exposure to XRP through Ripple, of which it is one of the largest external shareholders. Its subsidiary SBI Remit operates international remittance corridors based on the token. If approved, the ETF could solidify XRP as an institutional asset in Japan, a market where it already enjoys significant acceptance.

Despite this, there are concerns about XRP's liquidity compared to Bitcoin. With spot ETFs requiring real-time asset value monitoring, this disparity could affect the funds' operational efficiency. Domestic institutional demand also remains a variable, as cryptocurrency ETFs have been experiencing outflows in other markets.

There is no set timetable for the launch yet. Approval depends on parliamentary progress and final definitions regarding custody, price data integrity, and leverage rules. If approved, Japan could become the first major economy to authorize a spot XRP ETF.