Grayscale Investments has officially filed to convert its Grayscale XRP Trust into a spot exchange-traded fund (ETF) on the New York Stock Exchange (NYSE).
Grayscale's XRP Trust Conversion Application
Grayscale Investments has filed to convert its XRP Trust into a spot ETF on the NYSE. If approved, the trust, currently valued at $16.1 million, will become a fully regulated investment vehicle for XRP. This move is part of Grayscale's strategy to bring more crypto-based ETFs to market, following applications for Litecoin and Solana ETFs. The 19b-4 filing outlines key details about the proposed XRP ETF: Coinbase Custody Trust will act as the fund’s custodian, BNY Mellon Asset Servicing will serve as the transfer agent, and the ETF will be listed on NYSE Arca.
Changing Regulatory Landscape
Grayscale's filing comes at a time of significant shifts in the U.S. Securities and Exchange Commission (SEC). Recent leadership changes and the appointment of pro-crypto figures have sparked optimism about potential regulatory changes. The SEC's recent approvals of spot Bitcoin and Ethereum ETFs pave the way for cryptocurrencies like XRP to receive similar treatment.
The Growing Race for Crypto ETFs
Grayscale is not alone in its efforts to expand the crypto ETF market. CoinShares, Bitwise, ProShares, WisdomTree, and REX Shares have all submitted filings for XRP-based ETFs, signaling strong institutional interest in the token. So far, the SEC's lack of immediate action on the Solana ETF filings suggests a more detailed review process is underway.
Grayscale's and other companies' endeavors to launch their ETFs reflect a confidence in the future of cryptocurrencies on regulated markets. With current support from changing regulatory frameworks, analysts expect further approvals in the coming months.
