Quickly understand the history and background of various well-known coins

Grayscale Seeks SEC Nod for $16M XRP Trust to ETF Conversion

Coin WorldFriday, Jan 31, 2025 6:20 am ET

1min read

Grayscale Seeks SEC Approval to Convert $16M XRP Trust to ETF

Grayscale Investments, a prominent player in the cryptocurrency investment space, has submitted an application to the Securities and Exchange Commission (SEC) to convert its XRP Trust into an exchange-traded fund (ETF). The filing, made on January 30, 2025, seeks to list the proposed ETF on the New York Stock Exchange.

The current XRP Trust, which operates as a Delaware statutory trust, manages over $16 million in assets as of Friday. According to the filing, the proposed ETF would maintain XRP as its primary asset and track its performance on a price return basis, with adjustments for operational fees.

This move by Grayscale comes as part of a broader trend, with several other investment firms also pursuing XRP-based ETF products. Companies including CoinShares, Bitwise, Canary Capital, 21shares, WisdomTree, and Rex & Osprey have submitted similar applications, indicating growing institutional interest in structured XRP investment products.

JPMorgan has released estimates suggesting that XRP exchange-traded products could attract between $4 billion and $8 billion in investments. These projections are based on analysis of existing Bitcoin and Ethereum product patterns and their respective market capitalizations.

Trading activity in the XRP ecosystem has shown notable growth. The XRP Ledger’s decentralized exchange reached a milestone in January 2025, with swap volumes exceeding $1 billion for the first time since the launch of its automated market maker feature in May.

The trust’s current assets under management represent 1.2% of the total assets in XRP exchange-traded products, according to data from CoinShares. This relatively small market share suggests room for growth in the XRP investment product space.

Market observers have noted potential catalysts for XRP ETF development. A leaked page from the Chicago Mercantile Exchange (CME) indicated possible XRP futures launching on February 10, 2025, though the page was quickly removed and no official announcement has been made.

Bloomberg ETF analysts Eric Balchunas and James Seyffart have predicted an upcoming “wave of crypto ETFs” this year, including XRP funds. However, they note that

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.