Grayscale Joins XRP ETF Race: Applies to Convert Its Trust

After Bitcoin and Ether, companies are now pushing to list spot XRP exchange-traded funds (ETFs) on US stock exchanges. Recently, Grayscale Investments filed an application with the Securities and Exchange Commission (SEC) to convert its XRP Trust into an ETF.

If approved, the XRP ETF will be listed on the New York Stock Exchange (NYSE).

Grayscale Follows Its Proven Playbook

The crypto asset manager previously converted its Bitcoin and Ethereum investment trusts into ETFs listed on public exchanges. Now, it is doing the same with XRP.

Grayscale operates its XRP Trust as a Delaware statutory trust. As of today (Friday), it manages over $16 million in XRP. The proposed ETF will primarily hold XRP, tracking its price returns while accounting for operational fees, offering investors direct exposure to XRP's performance.

CoinShares and Bitwise are two other companies that have filed for XRP-based ETFs. Although these two companies have submitted S-1 filings with the SEC, the regulator has yet to decide. Many companies are also pushing for the approval of Solana and Dogecoin spot ETFs.

More and More ETF Applications Are Coming

While the SEC took years to approve spot Bitcoin ETFs, the simultaneous approval of 11 spot Bitcoin ETFs opened the floodgates for such mainstream crypto products. Within months, approval for spot Ether ETFs followed, and now companies are considering listing other spot crypto ETFs.

Ripple also fought a long battle with the US SEC over the status of the XRP token, which the regulator alleged was an unregistered security. Although a court ruled that XRP offerings to retail customers were legitimate, the company violated US laws with its institutional offerings and was fined $125 million. The regulator, however, challenged the court’s decision, seeking a higher penalty.

The crypto industry now expects progressive policies under a new White House administration. Earlier this month, Ripple Labs President Monica Long stated that a spot XRP ETF could “soon be a reality” under the new US administration.

Also, with Gary Gensler out and a new chair in place, the SEC is expected to drop its fight against Ripple.

Recently, Ripple also secured two more Money Transmitter Licenses from two US states, one from the New York and the other from Texas.