Grayscale Investments has officially filed to convert its Grayscale XRP Trust into a spot ETF on the New York Stock Exchange. If approved, the trust will become a fully regulated investment vehicle.
Grayscale's New XRP ETF Proposal
Grayscale is pushing to expand its crypto-based ETF lineup, having also filed for Litecoin and Solana ETFs. The company's latest filing outlines that Coinbase Custody Trust will act as the custodian, with BNY Mellon Asset Servicing as the transfer agent. The ETF is set to list on NYSE Arca, pending regulatory approval. This structured approach is aimed at addressing past regulatory issues regarding custody and compliance, potentially increasing the chances of SEC approval.
Changes in Regulatory Landscape
Grayscale's filing comes as the U.S. Securities and Exchange Commission (SEC) undergoes significant changes, particularly following the departure of former chair Gary Gensler and the appointment of pro-crypto officials. The SEC has already approved spot Bitcoin and Ethereum ETFs, paving the way for similar treatments for XRP, Solana, and Litecoin. The new crypto task force led by Hester Peirce is focusing on clear guidelines for digital assets.
The Race for Crypto ETFs
Grayscale is not alone in seeking to expand the crypto ETF market. CoinShares, Bitwise, ProShares, WisdomTree, and REX Shares have all filed for XRP-based ETFs, indicating strong institutional interest in the token. While the SEC's recent lack of immediate action on the Solana ETF filing suggests a more detailed review process, analysts expect a wave of approvals for additional spot crypto ETFs with the new administration's pro-crypto stance.
Grayscale's application to convert XRP Trust to an ETF could be a significant step towards regulation and acceptance of digital assets, boosting institutional interest and market stability for XRP.
