NYSE Arca Proposes XRP ETF: A Game Changer for Crypto Adoption
1min read NYSE Arca has officially proposed a rule change that could significantly impact the cryptocurrency market. The exchange has submitted a filing to the U.S. Securities and Exchange Commission (SEC) to allow the Grayscale XRP Trust to be converted into a spot exchange-traded fund (ETF). This development represents a significant step toward broader institutional and retail adoption of XRP within the U.S. financial markets.
The Grayscale XRP Trust currently manages $16.1 billion in XRP assets, enabling U.S. investors to gain exposure to XRP without holding the digital asset directly. If approved, the trust’s conversion into an ETF would increase accessibility for a broader range of investors by allowing shares to be traded on NYSE Arca, one of the largest U.S. exchanges.
To ensure price integrity, the proposed ETF would use a pricing mechanism provided by CoinDesk Indices, which aggregates data from leading cryptocurrency exchanges. This structure aims to prevent market manipulation and maintain transparency in XRP price discovery. All XRP assets will be held in cold storage by Coinbase Custody Trust Company, providing multi-layered security and mitigating risks associated with centralized storage.
The proposed ETF will operate with a cash-based creation and redemption process, ensuring compliance with existing regulatory frameworks. The minimum basket size for creation and redemption will be 10,000 shares, allowing for efficient trading operations.
To maintain fair and efficient trading, NYSE Arca will provide intraday indicative value (IIV) updates every 15 seconds during market hours, ensuring that investors receive real-time information on the ETF’s value. The trading hours for the proposed XRP spot ETF will be 4:00 AM to 8:00 PM ET, extending beyond traditional market hours and offering investors greater flexibility. NYSE Arca will actively monitor trading activity and has the authority to halt trading in cases of significant market disruptions or irregularities in price data.
To ensure transparency and investor protection, the net asset value (NAV) of the ETF will be calculated daily and made available to all market participants simultaneously. The trust will not actively manage XRP holdings; instead, it is structured to track the price of XRP minus fees and expenses. Institutional support for the ETF includes Delaware Trust Company as the trustee and BNY Mellon as the transfer agent, reinforcing institutional-grade infrastructure in X 
