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Grayscale Investments has submitted a proposal to convert its XRP (CRYPTO: XRP) Trust into an exchange-traded fund at the New York Stock Exchange.
The move comes as part of a broader effort by asset managers to introduce regulated investment vehicles for digital assets.
If the SEC grants approval, the Grayscale XRP Trust, currently holding approximately $16.1 million in assets, would transition into an ETF.
Grayscale argues that converting the trust into an ETF would enhance accessibility while ensuring compliance with regulatory standards under a national securities exchange.
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The fund is designed to reflect XRP’s market value while deducting operational fees.
Assets associated with the trust are securely held by Coinbase Custody Trust Company.
This application follows Grayscale’s recent efforts to introduce ETFs for other digital assets, including Solana (CRYPTO: SOL) and Litecoin (CRYPTO: LTC), reinforcing its strategy to integrate cryptocurrencies into conventional investment frameworks.
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Why It Matters: Grayscale is not the only firm eyeing an XRP ETF.
Other financial institutions, including CoinShares and Bitwise, have also submitted similar applications, highlighting increased institutional interest in structured XRP investment products.
The asset’s market capitalization stands at nearly $180 billion, with XRP maintaining its position as one of the top cryptocurrencies, despite trading slightly below its record high of $3.40.
Listing the fund on NYSE Arca would bring XRP investment under the oversight of a national securities exchange, potentially making it more appealing to both institutional and retail investors.
With regulatory approval of spot Bitcoin ETFs already in place, asset managers are increasingly pushing for similar investment products tied to altcoins.
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The SEC’s response to this application will be closely watched, as it could set a precedent for further crypto-based ETFs entering the market.
Grayscale Investments, the world’s largest digital currency asset manager, has filed with the U.S. Securities and Exchange Commission (SEC) to convert its XRP Trust into an exchange-traded fund (ETF).
The move comes as Grayscale looks to capitalize on the increasing demand for cryptocurrency investment products and provide investors with more options for exposure to digital assets.
The XRP Trust was established in 2019 and currently holds a significant amount of XRP, the digital currency associated with Ripple Labs. By converting the trust into an ETF, Grayscale aims to make it easier for investors to access and trade XRP through a regulated investment vehicle.
If approved by the SEC, the XRP ETF would join a growing list of cryptocurrency ETFs, including those based on Bitcoin and Ethereum. These ETFs have become popular among both retail and institutional investors seeking exposure to the rapidly growing digital asset market.
Grayscale’s decision to seek SEC approval for the XRP ETF demonstrates the company’s commitment to providing innovative investment products in the cryptocurrency space. With the continued expansion of digital asset adoption, the demand for regulated investment vehicles like ETFs is only expected to increase.
As the regulatory landscape for cryptocurrencies continues to evolve, Grayscale’s move to convert the XRP Trust into an ETF could pave the way for more mainstream acceptance of digital assets as an investment class. Investors will be eagerly awaiting the SEC’s decision on the proposal and the potential impact it could have on the cryptocurrency market.
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Grayscale, SEC approval, XRP Trust, exchange-traded fund, cryptocurrency, digital asset, investment, regulatory approval, financial market, blockchain technology
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