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Grayscale Seeks XRP ETF Approval, Sparking Institutional Interest

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

1min read

The U.S. Securities and Exchange Commission (SEC) has acknowledged an application from Grayscale Investments to convert its $16 million XRP Trust into an exchange-traded fund (ETF), marking a significant step in the cryptocurrency investment landscape. The filing, submitted on January 30, 2025, seeks to list the proposed ETF on the New York Stock Exchange (NYSE).

Grayscale's move 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 approval timelines might be extended due to ongoing SEC lawsuits regarding XRP’s classification as a security.

Ripple Labs president Monica Long has expressed optimism about XRP ETF prospects under the current administration. Long suggested that such products could “soon be a reality” under President Trump, who has pledged to support U.S.-based crypto innovation.

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