The SEC is anticipated to acknowledge Grayscale Investments' application to convert its XRP Trust into an ETF as early as this week, reflecting the agency's stance on XRP amid historical legal disputes with Ripple.
Conversion of XRP Trust to ETF
Grayscale Investments has submitted an application to transform its existing XRP Trust, which manages approximately $16.1 million in assets, into an exchange-traded fund (ETF) to be listed on the New York Stock Exchange. The SEC typically has a 15-day window to respond to such applications, making a decision possible by February 13.
Impact for Investors
The conversion would allow investors to trade shares of the fund, providing exposure to XRP without the complexities of direct cryptocurrency ownership. This could simplify investments and reduce risks for traditional investors unfamiliar with cryptocurrencies.
Experts' Predictions
According to Polymarket, there is an estimated 81% probability of the fund's approval. This view is based on recent court rulings favoring Ripple, showing that XRP is not a security when traded on secondary markets.
The outcome of the SEC's decision will be significant for the market, indicating possible regulatory changes for cryptocurrencies. This event could be a crucial indicator for the future development of the sector.
