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"NYSE Arca Seeks SEC Nod for XRP ETF Conversion"

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

1min read

NYSE Arca Files 19b-4 Form with SEC to Convert Grayscale XRP Trust to Spot ETF

The New York Stock Exchange Arca has submitted a 19b-4 filing with the U.S. Securities and Exchange Commission (SEC) to convert Grayscale's XRP Trust into a spot exchange-traded fund (ETF). This move is the second step in a two-step process for applying for a spot crypto ETF in the United States. The exchange submits a 19b-4 filing to request a modification to existing rules to allow for the ETF's trading. This is a critical part of the ETF approval process, and once approved by the SEC, the filing will be published in the Federal Register, initiating the approval process.

Grayscale's XRP Trust has approximately $16.1 million in assets under management (AUM). The conversion to an ETF would provide investors with a more accessible and liquid investment vehicle for exposure to XRP. 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. The recent push for crypto ETF approvals coincides with Donald Trump securing a second presidential term, a factor that has galvanized expectations around more favorable regulations for digital assets. 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.

The recent activity in applying for new crypto ETFs does not stop with Grayscale. Other asset managers, including Rex Shares, Canary Capital, and 21 Shares, have submitted applications to launch their own XRP ETFs. Additionally, issuers have revisited previous applications for Solana ETFs, reflecting

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