Grayscale Investments has officially submitted a request with the New York Stock Exchange (NYSE) to convert its XRP Trust into a spot XRP exchange-traded fund (ETF). This groundbreaking move would enable investors to trade shares tied directly to XRP’s market performance under regulated oversight, simplifying access to the cryptocurrency.
Grayscale’s Strategic Push for an XRP ETF
In its filing, Grayscale announced plans to list shares of the Grayscale XRP Trust on NYSE Arca. By transitioning the trust into an ETF, the company aims to:
- Provide investors with a seamless way to gain XRP exposure without custody challenges.
- Enhance liquidity and transparency through national securities exchange rules.
- Align with similar initiatives by competitors like WisdomTree and Bitwise, who have also filed for XRP ETFs.
The trust currently holds $16.1 million in assets under management (AUM) and operates as a Delaware statutory trust. Coinbase Custody Trust Company will continue safeguarding the underlying XRP assets.
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A Growing Trend: Crypto ETFs Beyond Bitcoin
Grayscale’s XRP ETF filing follows recent applications for Solana (SOL) and Litecoin (LTC) ETFs, underscoring institutional demand for diversified crypto offerings. If approved, this could:
- Broaden mainstream adoption of XRP.
- Offer a regulated alternative to direct token ownership.
- Potentially stabilize XRP’s market positioning.
Despite the announcement, XRP’s price remained steady at $3.138**, just **8% below its all-time high** of $3.40. Analysts, including AI platform DeepSeek, predict XRP could surge to $30** by year-end.
Investor Benefits and Market Impact
Approval of the spot XRP ETF would allow shares to trade on the NYSE, offering:
- Simplified access for institutional and retail investors.
- Enhanced security under exchange regulations.
- Greater liquidity for XRP markets.
Grayscale emphasized that the trust is among the world’s largest XRP investment vehicles, with $16.1M AUM as of the filing date.
Grayscale’s Expanding Crypto ETF Portfolio
This move aligns with Grayscale’s broader strategy:
- Launched the Bitcoin Miners ETF (MNRS) in January.
- Filed for Solana and Litecoin ETFs earlier this year.
- Continues pioneering regulated crypto investment products.
The XRP Trust debuted in September 2024 for accredited investors and may now transition into a publicly traded ETF, pending SEC approval.
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FAQs
1. What is a spot XRP ETF?
A spot ETF holds actual XRP tokens, allowing investors to trade shares reflecting XRP’s price without owning the asset directly.
2. How does this differ from a futures-based ETF?
Spot ETFs track the live market price, while futures ETFs derive value from XRP futures contracts, often leading to price discrepancies.
3. When will Grayscale’s XRP ETF launch?
The launch depends on SEC approval, which could take months or longer, given regulatory scrutiny.
4. Why is this filing significant?
It signals institutional confidence in XRP and could drive broader adoption if approved.
5. How will this affect XRP’s price?
Short-term impact may be muted, but long-term adoption through ETFs could bolster demand and stability.
6. What other cryptos are getting ETFs?
Solana, Litecoin, and Ethereum are also under consideration by various asset managers.
Conclusion
Grayscale’s XRP ETF filing marks a pivotal moment for crypto investment accessibility. If greenlit, it could pave the way for further institutional adoption of XRP and other digital assets. Investors should monitor SEC developments closely, as approval could redefine crypto market participation.