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HomeCrypto NewsMarketGrayscale Officially Seeks SEC Approval to Convert XRP Trust into an ETF

Grayscale Officially Seeks SEC Approval to Convert XRP Trust into an ETF

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A Grayscale XRP ETF, one of the most anticipated products in the XRP community, is now on track to become a reality.

On Thursday, the New York Stock Exchange filed a registration statement with the U.S. SEC, formally requesting permission to list and trade the Grayscale XRP Trust on the exchange. This move paves the way for the Grayscale XRP Trust to be converted into an ETF.

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Grayscale XRP Trust Upgrading to an ETF

Notably, this action comes a few months after the re-launch of the Grayscale XRP Trust in September 2024. The product saw remarkable success in the last quarter of 2024, ending with over 300% gains.

Furthermore, the filing highlighted that the Grayscale XRP Trust is one of the largest XRP investment funds globally, holding around $16.1 million in assets under management.

The Trust provides U.S. investors with a way to gain exposure to XRP without the hassle of directly managing cryptocurrency. It issues shares that represent a proportional interest in its XRP holdings minus expenses. Also, the value of these shares is tied to the market price of XRP. 

Crucially, the Trust does not actively trade or attempt to profit from XRP’s price fluctuations. Instead, it is a passive vehicle that solely tracks the value of XRP with minimal management.

With the planned upgrade to an ETF, investing in XRP will become even more accessible, offering broader access to a wider range of investors. The ultimate goal is to convert the Trust into a regulated ETP, providing easier access to XRP via traditional stock exchanges.

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Other Asset Managers Seeking XRP ETF

Earlier this week, CoinShares applied to the SEC to launch an XRP ETF called the CoinShares XRP ETF. It also aims to track XRP’s performance via the Compass Crypto Reference Index. 

If approved, the ETF will trade on the Nasdaq, with shares issued in blocks of 5,000. CoinShares is the sponsor, and CSC Delaware Trust Company is the trustee. 

With this move, CoinShares joins other firms like Bitwise and WisdomTree in seeking SEC approval for XRP ETFs.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a seasoned crypto journalist who has established himself as a trusted voice in the world of blockchain and Web3. His extensive knowledge of the crypto space enables him to break down complex concepts into accessible language.

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