Grayscale Seeks Spot XRP ETF Listing on NYSE
Grayscale Investments has taken a significant step towards transforming the way investors access XRP by filing an application with the New York Stock Exchange (NYSE) to convert its existing XRP Trust into a spot exchange-traded fund (ETF). This move aims to provide investors with direct exposure to XRP without the need to hold the cryptocurrency itself. Currently, Grayscale manages $16.1 million in XRP assets, closely mirroring the market value of XRP.
The proposed ETF offers an accessible and regulated way for investors to trade XRP shares. 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 filed the required 19b-4 application with NYSE Arca, and the regulatory process will then begin with the Securities and Exchange Commission (SEC). The SEC will open a public comment period before making a final decision.
The Trust will continue to calculate the net asset value (NAV) daily, tracking XRP's market price by multiplying the current market price of XRP by its holdings. This ensures 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. Additionally, WisdomTree and Canary Capital are pursuing similar projects, indicating that more institutions are embracing this investment tool. XRP volumes on decentralized exchanges (DEXs) 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, citing the market's demand for crypto-based investment products, as evidenced by the success of Bitcoin and Ethereum ETFs from Grayscale.
The success of its Bitcoin Trust and other ETFs has prepared Grayscale to take a leadership position in the crypto ETF market and expand its reach in the newly developing market