Grayscale Investments has filed an application with the New York Stock Exchange (NYSE) to convert its existing XRP Trust into a spot XRP exchange-traded fund (ETF).
XRP ETF Conversion Plans
In its filing, Grayscale outlined plans to list shares of the Grayscale XRP Trust on NYSE Arca. The move aims to provide investors with streamlined exposure to XRP without requiring direct custody of the asset. The company claimed that an ETF structure would improve investor access, enhance liquidity, and bring the product under national securities exchange rules.
The Grayscale XRP Trust currently holds approximately $16.1 million in assets under management. Coinbase Custody Trust Company is expected to continue serving as the custodian for the underlying XRP holdings.
Increasing Trend of XRP ETF Applications
Grayscale is not alone in pursuing an XRP ETF. Competitors such as CoinShares, WisdomTree, and Bitwise have also submitted similar applications to the U.S. Securities and Exchange Commission (SEC). The ETF conversion would align XRP with other digital assets that have recently gained institutional recognition. The wave of filings suggests a growing appetite among asset managers to offer regulated investment products tied to digital assets.
Expanding Crypto Investment Products
The latest filing follows Grayscale’s broader push to expand its crypto investment offerings. On January 30, the firm launched the Grayscale Bitcoin Miners ETF (MNRS), which invests in publicly traded Bitcoin mining companies. Additionally, Grayscale has filed for ETFs tied to Solana and Litecoin, signaling its commitment to diversifying its digital asset portfolio.
If approved, Grayscale’s XRP ETF would offer a regulated alternative for investors seeking exposure to XRP without navigating the complexities of direct ownership. The firm emphasizes that the ETF structure could enhance investor protection and operational transparency.
Changing Regulatory Landscape
The regulatory environment for digital assets in the U.S. has shifted dramatically over the past year. Ripple, the company associated with XRP, was previously entangled in a legal battle with the SEC, which questioned whether XRP should be classified as a security. However, recent developments, including a leadership change at the SEC, suggest a more crypto-friendly stance may be emerging.
With increasing institutional interest and evolving regulations, the outcome of Grayscale’s ETF application could have significant implications for XRP adoption and the broader cryptocurrency market. Approval could pave the way for additional crypto ETFs, further integrating digital assets into the traditional financial system.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.