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, currently holding $16.1 million in assets, will transition into a fully regulated investment vehicle for XRP.
Application to Convert XRP Trust into ETF
This move is part of Grayscale's broader strategy to bring more crypto-based ETFs to market, following its recent applications for Litecoin and Solana ETFs. Grayscale's latest 19b-4 filing outlines the key details of 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. This structured approach aims to address past regulatory concerns about custody, compliance, and market surveillance, potentially improving the chances of SEC approval.
Changes in Regulatory Landscape
Grayscale's filing comes at a time when the U.S. Securities and Exchange Commission (SEC) is experiencing significant shifts. The recent departure of former SEC Chair Gary Gensler and the appointment of crypto-friendly figures under President Donald Trump’s administration have sparked optimism about regulatory changes. The SEC approved spot Bitcoin and Ethereum ETFs last year, paving the way for other cryptocurrencies like XRP, Solana, and Litecoin to receive similar treatment. With a new crypto task force led by SEC Commissioner Hester Peirce, the regulatory agency is now focusing on clear guidelines for digital assets, registration paths, and enforcement priorities.
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, signaling strong institutional interest in the token. Meanwhile, the SEC's recent lack of immediate action on the Solana ETF filing suggests a more detailed review process. However, with the new administration’s pro-crypto stance, analysts expect a wave of approvals for additional spot crypto ETFs in the coming months.
The filing to convert Grayscale's XRP Trust into a spot ETF reflects the confidence that the initiative will gain support amidst a changing regulatory environment. Successful approval could open new opportunities for institutional investors and stimulate liquidity in the XRP market.
