The race to bring an XRP exchange-traded fund (ETF) to the market is gaining momentum, with major players making strategic moves to secure regulatory approval. In a significant development, Grayscale and the New York Stock Exchange (NYSE) have filed a request with the United States Securities and Exchange Commission (SEC) to list and trade the Grayscale XRP Trust as an ETF.
Meanwhile, CoinShares has also submitted an application for its own XRP ETF, signaling growing institutional interest in the third-largest cryptocurrency by market. If approved, these ETFs could make XRP more accessible to mainstream investors, potentially increasing its adoption in the digital asset space.
Grayscale XRP ETF on the horizon?
Grayscale, one of the largest digital asset managers, is seeking to convert its existing XRP Trust into an ETF, a move that could make XRP investment more accessible to traditional investors. Bloomberg analyst James Seyffart confirmed the filing in an X post, noting that the trust currently holds approximately$16 million in assets under management (AUM) at the time.
Particularly, Grayscale and NYSE formally submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) on Thursday, requesting approval to list and trade the Grayscale XRP Trust as an exchange-traded fund (ETF).
This development follows the September 2024 relaunch of the Grayscale XRP Trust, which experienced a strong resurgence, ending the year with an impressive 300% gain. The Trust offers U.S. investors exposure to XRP without requiring direct management of the crypto asset. Its shares represent a proportional interest in XRP holdings, with the value tied to XRP’s market price.
Unlike actively managed funds, the Grayscale XRP Trust operates passively, tracking XRP’s value without trading or speculating on price movements. Converting the Trust into an ETF would open the door for more institutional and retail investors, allowing them to gain exposure to XRP through traditional stock exchanges.
Read also: Ripple and Ondo Finance to Deploy Tokenized US Treasury Fund on XRP Ledger
CoinShares joins the XRP ETF race
In a parallel move, CoinShares has also filed for an XRP ETF with the U.S SEC, further fueling excitement within the XRP community. The proposed CoinShares XRP ETF aims to track XRP’s price using the Compass Crypto Reference Index and, if approved, will be listed on the Nasdaq stock exchange.
Key details of the CoinShares XRP ETF filing include:
- Shares will be issued in blocks of 5,000
- CSC Delaware Trust Company will act as the trustee
- CoinShares will be the ETF sponsor
CoinShares’ entry into the XRP ETF market aligns with efforts from Bitwise, WisdomTree, and other asset managers seeking regulatory approval for similar crypto investment products. Notably, amidst the flurry of XRP ETFs filed with the U.S SEC in the past year, none have been approved to-date. However, market participants are optimistic that the SEC under the new administration would greenlight XRP ETFs launch.
Read also: XRP Surge: 2,300+ whale transactions in 8 hours; 500K+ new wallets on XRP Ledger
Why XRP ETFs matter
If approved, XRP ETFs will potentially increase institutional adoption of the Ripple-backed digital currency. This is so because, generally, ETFs make the base crypto asset more accessible to pension funds, asset managers, and retail investors who prefer regulated financial products.
Another potential benefit is the enhancement of market liquidity. It bears noting that ETFs can drive more trading volume and liquidity, potentially reducing volatility in the asset’s price. Also, SEC approval would signal growing regulatory acceptance of XRP as an investable asset class.
With the SEC now reviewing multiple filings from various asset management firms, investors are eagerly awaiting a decision that could reshape the XRP investment regime. In the meantime, XRP is changing hands at $2.63, translating to 10% price drop in the past seven days.
Read also: Ripple and Ondo Finance to Deploy Tokenized US Treasury Fund on XRP Ledger
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been studying the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
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