Grayscale Investments has filed to convert its XRP Trust into an exchange-traded fund on the New York Stock Exchange. This move aims to boost the presence of crypto ETFs in the financial world.
Details of Grayscale's Filing
Grayscale Investments plans to convert its XRP Trust, which holds $16.1 million in assets, into a spot exchange-traded fund (ETF) at the New York Stock Exchange. The crypto fund will be overseen by Coinbase Custody Trust as the custodian and BNY Mellon Asset Servicing as the transfer agent. This approach aims to address past regulatory concerns regarding custody, compliance, and market surveillance.
Regulatory Changes in the US
Grayscale's filing comes amidst shifts at the SEC. Recent leadership changes and the addition of pro-crypto figures bring optimism for regulatory transformations. Following the approval of spot Bitcoin and Ethereum ETFs last year, other cryptocurrencies like XRP, Solana, and Litecoin are expected to be considered. A new crypto task force led by Hester Peirce will focus on clear guidelines and priorities.
Competition in the Crypto ETF Market
Grayscale is not the only company looking to solidify its presence in the crypto ETF market. Firms like CoinShares, Bitwise, ProShares, WisdomTree, and REX Shares have also filed for XRP-based ETFs, indicating strong institutional interest in the digital asset.
Grayscale is moving towards broader recognition and support for crypto investments with its spot ETF plans. If approved, this could strengthen XRP's position and increase institutional interest in the crypto market.
