Grayscale Investments has officially filed to convert its Grayscale XRP Trust into a spot exchange-traded fund at the New York Stock Exchange. If approved, the trust, holding $16.1 million in assets, would become a fully regulated investment vehicle for XRP.
Grayscale's Plan to Launch XRP ETF
The company aims to launch a broader range of crypto ETFs, including recent applications for Litecoin and Solana ETFs. According to the latest 19b-4 filing, Coinbase Custody Trust will act as the fund’s custodian, and BNY Mellon Asset Servicing as the transfer agent. The ETF will be listed on NYSE Arca, pending regulatory approval. This approach seeks to address past regulatory concerns regarding custody, compliance, and market surveillance.
Regulatory Landscape Changes
Grayscale's filing comes at a time when the U.S. Securities and Exchange Commission (SEC) is undergoing significant shifts. The recent departure of the former SEC Chair and the appointment of crypto-friendly figures have sparked optimism about regulatory changes. The SEC has already approved spot Bitcoin and Ethereum ETFs, paving the way for other cryptocurrencies like XRP, Solana, and Litecoin.
Competition in the Crypto ETF Market
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 ETFs, indicating strong institutional interest. The SEC's recent lack of immediate action on the Solana ETF filing suggests a more detailed review process. However, analysts expect a wave of approvals for new crypto ETFs in the coming months amid the new administration’s pro-crypto stance.
If Grayscale succeeds in converting its XRP Trust into a regulated ETF, it could boost institutional adoption of the token, increase liquidity, and enhance price stability in the XRP market.
