Grayscale Investments has officially filed to convert its Grayscale XRP Trust into a spot exchange-traded fund (ETF) on the New York Stock Exchange. If approved, the trust will become a fully regulated investment vehicle for XRP.
Planning Crypto-ETF Changes
This move is part of Grayscale’s broader strategy to bring more crypto-based ETFs to market, akin to its recent applications for Litecoin and Solana ETFs. Grayscale's filing outlines the key details about the proposed XRP ETF: Coinbase Custody Trust will act as the fund’s custodian, ensuring secure storage of XRP, while BNY Mellon Asset Servicing will serve as the transfer agent. The ETF will be listed on NYSE Arca, pending regulatory approval.
SEC Regulatory Changes
Grayscale’s filing coincides with significant shifts within the U.S. Securities and Exchange Commission (SEC). The departure of former SEC Chair Gary Gensler and the appointment of crypto-friendly figures have sparked optimism about regulatory change. The SEC approved spot ETFs for Bitcoin and Ethereum last year, paving the way for similar instruments for cryptocurrencies like XRP, Solana, and Litecoin.
The 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, indicating strong institutional interest in the token. Meanwhile, the SEC’s lack of immediate action on applications like the Solana ETF suggests a more detailed review process. However, the new administration's pro-crypto stance renews hopes for an increased number of approvals in the coming months.
The transformation of Grayscale XRP Trust into an ETF is expected to attract traditional investors, increase institutional adoption of XRP, and boost liquidity and price stability in the token's market.