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.
Update: @NYSE & @Grayscale have filed to convert Grayscale's XRP trust into an ETF. The trust currently has ~$16 mln in assets. pic.twitter.com/QAufZoKDkA
— James Seyffart (@JSeyff) January 30, 2025
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.
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.
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