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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.