- Grayscale files for converting XRP Trust into a spot ETF.
- Institutional interest in XRP ETFs is increasing as regulations evolve.
Grayscale Investments is steadily making great leaps in helping transform the way access to XRP investments can take place. Officially, Grayscale filed its application with the New York Stock Exchange (NYSE) to transition the existing XRP Trust to a spot exchange-traded fund. This will be the right way to facilitate investors’ acquisition of direct XRP exposure minus holding the crypto itself. Presently, it manages $16.1 million in XRP assets and shadows the market value of XRP.
This ETF offers a more accessible and easier way for investors to trade XRP shares, regulated and easier than ever. If approved, the NYSE will list and trade the ETF shares, with Coinbase Custody Trust Company serving as the custodian and BNY Mellon Asset Servicing acting as the transfer agent. Grayscale has worked with NYSE Arca to file the required 19b-4 application. The regulatory process will then begin with the SEC, after which the latter will open a public comment period before making a final decision.
New Era for XRP Investment
The Trust will, therefore, continue to calculate the net asset value (NAV) daily, having already tracked XRP’s market price. The Trust computes it by multiplying the current market price of XRP by its holdings, ensuring that the shares reflect the true value of the cryptocurrency.
The filing is part of a broader trend in the crypto space, with firms like Bitwise and CoinShares also filing for XRP-based ETFs. In addition, WisdomTree and Canary Capital are pursuing similar projects, signaling that more institutions are embracing this investment tool. XRP volumes on DEX have surged, and swaps traded on the XRP Ledger DEX surpassed $1 billion for the first time since May 2024.
At the SEC, changes have been favorable for XRP ETFs. Mark Uyeda serves as the acting chairman of the commission, filling the position in Paul Atkins’ absence until his confirmation. Ripple Labs President Monica Long expects the approval of an XRP ETF. The market’s demand for crypto-based investment products is evident in the success of Bitcoin and Ethereum ETFs from Grayscale.
The success of its Bitcoin Trust and other ETFs has, therefore, now prepared Grayscale to take a leadership position for crypto ETFs and thus push its reach out in the newly developing market.
