NYSE Arca Seeks SEC Nod for XRP Spot ETF

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), seeking to convert Grayscale's XRP Trust into a spot exchange-traded fund (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. The exchange submits a 19b-4 filing to the SEC to request a modification to existing rules to allow for the ETF's trading. Once approved by the SEC, the filing will be published in the Federal Register, initiating the approval process.

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 move follows the successful transitions of Grayscale's Bitcoin Trust into a spot ETF in January 2024 and the Ethereum Trust in July 2024.

If approved, Coinbase Custody Trust Company will handle custodial services, while BNY Mellon Asset Servicing will manage the fund's transfer operations. This initiative, set against a backdrop of increasing demand and favorable regulatory conditions, positions XRP as a compelling investment option.

As the landscape for cryptocurrency investments evolves, the potential approval of Grayscale's XRP Trust conversion into a spot ETF could redefine market access for investors. This initiative spotlights the industry's trajectory toward greater integration within traditional financial frameworks.