Summary Franklin XRP ETF (XRPZ) stands out as the most attractive long-term vehicle for XRP exposure due to its low sponsor fee and substantial AUM. I assign a 'Hold' rating to both XRPZ and XRP-USD, reflecting ongoing risk-off sentiment and recent ~60% drawdown in XRP-USD. XRPZ benefits from regulated custody (Coinbase) and offers cost efficiency, but lacks staking yield unlike Solana or Ethereum ETFs. XRP Ledger’s payment-focused architecture offers institutional upside, yet network growth is limited by flat user base and modest developer activity. As discussed in our previous Crypto ETF articles , the launch of Bitcoin ETFs in 2024 has served as a springboard for broader cryptocurrency exchange traded funds entering the market, with XRP ETFs introduced near the end of 2025. Following the introduction, the landscape remains highly competitive, with numerous issuers bringing products to market. Such funds include the REX-Osprey XRP ETF ( XRPR ), Canary XRP ETF ( XRPC ), Franklin XRP ETF ( XRPZ ), 21Shares XRP ETF ( TOXR ), Bitwise XRP ETF ( XRP ), and the Grayscale XRP Trust ETF ( GXRP ). While all of these funds provide an adequate way for investors to access XRP through an ETF structure, we argue that the Franklin XRP ETF ( XRPZ ) is the best way for long-term investors to gain exposure outside of directly owning the underlying token due to its low expense ratio and sizeable AUM. However, given the current risk-off environment and recent 60% drawdown in XRP-USD, it is likely that in the short-to-intermediate term, headwinds will remain for cryptocurrencies as a whole. For that reason, I assign a “Hold” rating to both the underlying asset and XRPZ but remain cautiously optimistic about future long-term returns. Sponsor Fee, AUM, and Custody Among the current spot XRP ETFs, the Franklin XRP ETF ( XRPZ ) maintains the most cost-effective sponsor fee, making it the best choice for long-term investors seeking XRP exposure in an ETF wrapper. Likewise, in an environment in which Crypto ETFs are still very new, scale remains an important factor. Large AUM translates to tighter spreads, improved institutional adoption, and lower risk of fund closures. In this respect, while XRPC leads in terms of assets under management ($259.78M), XRP and XRPZ are only slightly behind (with AUM of $257.46M and $224.93M). ETF Sponsor Fee Net Assets (As of 2/28/26) XRPZ 0.19%* $224.93M TOXR 0.30% $166.34M XRP 0.34% $257.46M GXRP 0.35% $72.46M XRPC 0.50% $259.78M XRPR 0.75% $59.75M *Current fee waiver of 0% until May 31, 2026 (Source: Fidelity and Individual fund websites) How funds custody their digital assets also remains vitally important. Most crypto ETFs rely on regulated third-party custodians that specialize in digital asset storage. These custody arrangements help ensure that the underlying asset remains secure while allowing the ETF sponsor to manage the creation and redemption process efficiently. Unlike other funds in which we have analyzed [that track Bitcoin or Ethereum], it appears that none of the current XRP ETFs currently self-custody XRP-USD. As is the case, Coinbase appears to be the go-to custody provider, with some funds diversifying across multiple service providers (e.g., TOXR and XRPC). ETF Digital Asset Custodian XRPZ Coinbase Custody Trust Company, LLC TOXR Anchorage Digital Bank N.A., BitGo New York Trust Company LLC, Coinbase Custody Trust Company LLC XRP Coinbase Custody Trust Co., LLC GXRP Coinbase Custody Trust Company, LLC XRPC Bitgo Trust Company LLC, Gemini Trust Company LLC (Source: Individual fund websites) While we consider the Franklin XRP ETF ( XRPZ ) the best ETF option for long-term exposure, given its low fee structure and breadth of liquidity, we must also consider XRP-USD compared against other cryptocurrencies. In this regard, Ripple ETFs behave much like Bitcoin ETFs. XRP ETFs have one purpose, and that is to provide investment performance that corresponds with the performance of the underlying asset. One potential negative of this is the lack of potential yield, as we see from other crypto ETFs. For example, Solana (and some Ethereum Funds) offer yield in the form of staking rewards. However, for XRP-USD, the underlying mechanism does not provide the opportunity for such income generation. Investors must acknowledge that owning an XRP ETF assumes that future price appreciation will be the sole means of returns. XRP Ledger The underlying XRP Ledger differentiates itself from other leading blockchain networks in that it was specifically designed to facilitate payments and cross-border transactions. Its architecture allows financial institutions to move value quickly across borders without relying on traditional pre-funded accounts, creating potential upside if bank adoption continues to expand. In particular, the network’s ability to serve as a bridge for cross-border liquidity and banking settlement rails remains one of the most optimistic elements for the long-term bullish thesis. With that said, given the quick transaction settlement on the XRP Ledger (approximately 3-5 seconds) and low transaction costs, Ripple remains a potentially attractive option for institutional high-frequency payment activity. Whether broad institutional adoption is to occur remains to be seen. Conversely, several limitations are also present when evaluating the XRP ecosystem. Stablecoin activity on the XRP Ledger remains relatively limited when compared to other networks such as Ethereum and Solana. Additionally, when compared to other cryptocurrencies (i.e., Ethereum), XRP’s developer ecosystem remains relatively small. As a result, there are fewer decentralized applications and tokenized assets on the network. While the network remains well-positioned for payment-specific use cases, it appears to be more functionally limited when compared to other blue-chip L1s. To get a better understanding of current network activity, we look at the number of active users and the number of transactions executed. Over the last year, activity on the XRP Ledger has remained relatively stable. The number of transactions has ranged between approximately 1.5 million and 2.5 million per day. Notably, transaction activity increased in January/February 2026, from one million to over three million, before pulling back to the lower end of the long-term range. In our view, this suggests that while transaction volume may fluctuate, there continues to be a steady baseline of activity. Number of Transactions Executed (Source: XRP Scan) Over the last year, active addresses have fluctuated between approximately 15,000 and 25,000 daily users. However, despite the increase in transactions, the number of active network participants has remained relatively flat. Taken together, this suggests that growth in transactions may be driven more by current existing users rather than expansion of new users. While the network has been around since 2012, it is still largely dependent on meaningful adoption. This proves somewhat worrisome, as we would prefer to see an expanding user base. Number of Active Accounts (Source: XRP Scan) Technicals & Risks In terms of the current market environment and potential risks, the crypto market appears to generally be in a cooling-off period. With major cryptocurrencies like Bitcoin and Ethereum having completed their bull expansion phases near the end of 2025, liquidity appears to be moving along the risk curve out of cryptocurrencies to lower-risk assets. This is supported by the technicals. XRP-USD is currently trading below its 20-week and 50-week moving averages but remains above the 200-week SMA. Weekly-RSI is at a three-year low, currently sitting at 32.79. XRP-USD Weekly Price Chart (Source: Stock Charts) Conclusion The emergence of XRP ETFs represents another step forward in the institutional adoption of cryptocurrencies. For investors looking to gain long-term exposure to XRP, the ETF structure provides a convenient alternative to directly holding the underlying asset while removing the typical challenges associated with holding digital assets (i.e., custody, exchange risks, tax reporting, etc.). Among the current offerings, we argue that the Franklin XRP ETF ( XRPZ ) appears to provide an attractive vehicle for long-term investors due to its low sponsor fee and significant asset base. However, with XRP-USD currently trading below key moving averages and sentiment resetting, it is our view that near-term volatility will continue. For this reason, while Ripple ETFs provide an efficient vehicle for gaining exposure to XRP, the current environment supports a ‘Hold’ rating for both XRPZ and the underlying cryptocurrency.
