Grayscale Investments has filed to convert its Grayscale XRP Trust into a spot ETF on the New York Stock Exchange.
Plan to Convert XRP Trust
The primary aim of this conversion is to expand investment opportunities in XRP. Grayscale, the asset manager, has also recently applied for Litecoin and Solana ETFs. According to the latest 19b-4 filing, Coinbase Custody Trust will act as the custodian, while BNY Mellon Asset Servicing will serve as the transfer agent. If approved, the ETF will be listed on NYSE Arca.
Changing Regulatory Environment
The filing coincides with significant changes within the U.S. Securities and Exchange Commission (SEC). Appointments of crypto-friendly figures, like SEC Commissioner Hester Peirce, foster optimism regarding future regulatory shifts. The SEC approved spot Bitcoin and Ethereum ETFs last year, setting a precedent for the adoption of similar ETFs for other cryptocurrencies.
Growing Race for Crypto ETFs
Grayscale is not alone in its quest to expand the crypto ETF market. CoinShares, Bitwise, ProShares, WisdomTree, and REX Shares have also submitted applications for XRP-based ETFs. Analysts expect a wave of approvals for new spot crypto ETFs, given the new administration's pro-crypto stance.
The transition of Grayscale XRP Trust into a spot ETF could be a significant step in institutional crypto adoption, enhancing liquidity and price stability in the market.
