Grayscale Investments has filed a formal application with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale XRP Trust into an exchange-traded fund (ETF) on NYSE Arca.
Filing Details
The Grayscale XRP Trust currently manages approximately $16.1 million in assets and operates as a Delaware statutory trust. According to the filing, Grayscale aims to move this trust to NYSE Arca as an ETF.
Objectives and Benefits
The main goal of converting the trust into an ETF is to provide investors with greater access to XRP while benefiting from the regulatory oversight of a national securities exchange. The fund's assets are securely held by Coinbase Custody Trust Company.
Current Situation and Prospects
The filing for an XRP ETF follows recent applications for Solana and Litecoin ETFs, emphasizing Grayscale's strategic expansion into cryptocurrency-based ETFs. Grayscale is not alone in its interest; CoinShares and Bitwise have also submitted similar proposals to the SEC.
The conversion of Grayscale XRP Trust into an ETF could be a crucial step towards providing broader access to digital assets within a regulated framework. As interest in cryptocurrency products and funds grows, this initiative could play a significant role in shaping the industry.
