Grayscale Investments has officially filed to convert the Grayscale XRP Trust into a spot ETF at the New York Stock Exchange, potentially marking a significant step in bolstering institutional adoption of XRP.
Grayscale's Plans for XRP ETF
Grayscale aims to diversify the crypto ETF market by applying for funds based on XRP, Litecoin, and Solana. According to the filed application, Coinbase Custody Trust will act as the custodian, while BNY Mellon will serve as the transfer agent. This approach could address past regulatory concerns, enhancing the chances of SEC approval.
Regulatory Changes
Grayscale's filing coincides with changes at the SEC. The departure of former SEC Chair Gary Gensler and the appointment of more crypto-friendly officials have raised hopes for regulatory changes. The SEC has already approved spot ETFs on Bitcoin and Ethereum, setting a precedent for XRP and other cryptocurrencies.
Growing Interest in Crypto ETFs
Grayscale is not the only company aiming to expand the crypto ETF market. CoinShares, Bitwise, ProShares, and others have submitted applications for XRP-based ETFs, demonstrating strong institutional interest. However, the SEC has yet to make a final decision on some of these applications, possibly indicating a more thorough review process.
As Grayscale and other companies await a positive response from the SEC, the market eagerly anticipates increased institutional adoption and liquidity for cryptocurrencies through the approval of new ETFs.
