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Grayscale's XRP Trust Seeks Spot ETF Conversion on NYSE Arca

Coin WorldThursday, Jan 30, 2025 9:24 pm ET

1min read

NYSE Arca has filed a 19b-4 form with the SEC, seeking to convert Grayscale's XRP Trust into a spot ETF. The trust's assets under management (AUM) stand at approximately $16.1 million. This filing is the second step in a two-step process for applying for a spot crypto ETF in the United States. If approved, the ETF will be traded on the NYSE Arca exchange.

Grayscale's XRP Trust conversion to an ETF reflects a significant shift in the cryptocurrency investment landscape. As institutional interest in digital assets escalates, this initiative underscores Grayscale's adaptability in the evolving market. The filing notes that the trust's shares are held by American investor accounts seeking exposure to XRP "without the cost and complexity of purchasing the asset directly."

NYSE Arca's application to transform Grayscale's XRP Trust into a spot ETF highlights rising institutional interest in digital assets amid evolving regulations. If approved, Coinbase Custody Trust Company will handle custodial services, while BNY Mellon Asset Servicing will manage the fund's transfer operations.

Recent trends in the cryptocurrency industry have seen a notable shift towards the conversion and establishment of more accessible investment vehicles. Grayscale's XRP Trust is among multiple trusts the firm is revitalizing, following the successful transitions of its Bitcoin Trust into a spot ETF in January 2024 and the Ethereum Trust in July 2024. The urgency for such conversions can be attributed to surging institutional interest, exacerbated by the recent political climate which has emboldened new applications for various crypto ETFs.

The recent push for crypto ETF approvals coincides with Donald Trump securing a second presidential term. Investors are keenly watching as these political dynamics evolve, as Trump's campaign has promised not only to ease regulations but to position the U.S. as a global leader in cryptocurrency innovation.

Investor sentiment regarding XRP has experienced a boom, with the cryptocurrency approaching its all-time high of $3.40 earlier in the month, currently trading at $3.13. This resurgence in value reflects a broader market shift and the growing acceptance of cryptocurrencies, driven largely by the introduction of popular spot Bitcoin and Ethereum ETFs from major financial entities such as BlackRock and Fidelity.

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