Cryptocurrency asset management giant Grayscale Investments has filed a significant interest with the U.S. Securities and Exchange Commission (SEC). Specifically, Grayscale has filed to convert its XRP Trust into an exchange-traded fund (ETF).
Grayscale Seeks SEC’s Sign-Off To Convert Its XRP Trust Into An ETF
Grayscale has made a move to convert its XRP Trust into an ETF. The proposed product would continue to hold XRP as its primary asset and provide investors with direct exposure to its price performance.
If approved, the crypto behemoth would trade the XRP ETF on the New York Stock Exchange’s (NYSE) floor. The 19b-4 filing submitted Thursday reveals that Coinbase Custody Trust Company, LLC would serve as the custodian, and BNY Mellon Asset Servicing would act as the ETF’s transfer agent and administrator.
“The Trust is one of the world’s largest XRP (‘XRP’) investment funds by assets under management as of the date of this filing,” the filing notes. “The Trust has approximately $16.1 million in assets under management, and its Shares are held by American investor accounts seeking exposure to XRP without the cost and complexity of purchasing the asset directly.”
The move follows Grayscale’s successful conversion of its flagship Bitcoin Trust into a spot ETF in January 2024 and its Ethereum Trust into a spot product six months later. The asset manager has also sought the SEC’s sign-off to convert its Digital Large Cap Fund — which holds Bitcoin, Ether, Solana, Avalanche, and Ripple’s XRP — into a multi-crypto ETF.
Besides Grayscale, firms like WisdomTree, Bitwise, and Canary Capital have also filed paperwork for US XRP-based ETFs, signaling a growing institutional demand for regulated investment vehicles in the third-largest cryptocurrency.
Is $4 XRP Possible?
Ripple’s XRP has decoupled from the rest of the crypto market due to positive regulatory developments for Ripple, which secured approval for its US dollar-pegged stablecoin, Ripple USD (RLUSD), from the New York Department of Financial Services.
Ripple also recently received Money Transmitter Licenses in Texas and New York, adding to the blockchain payment firm’s over 60 licenses across the globe.
Meanwhile, XRP’s price may be preparing for a breakout above the $4 level by the end of February, per technical chart patterns observed by popular crypto analyst Dark Defender.
“XRP is pending confirmation on 4-hour and 1-day time frames for the breakout. The short-term target is $4 with Sub-Wave 5, and the Support is $3.07,” Dark Defender said in a Thursday X post.
With that being said, institutional investors are likely to flood the market if a U.S.-listed XRP ETF is approved, setting the crypto up for immense accumulation and a potential price explosion.