Grayscale Investments Files for XRP ETF
Grayscale Investments, a leading player in the cryptocurrency fund sector, has officially submitted an application to the Securities and Exchange Commission (SEC) to transition its XRP Trust into an exchange-traded fund (ETF). If approved, this ETF would be listed on the prestigious New York Stock Exchange (NYSE). Currently, the XRP Trust operates as a Delaware statutory trust and manages assets exceeding $16 million in XRP as of the latest report.
The proposed ETF aims to maintain XRP as its primary asset while closely tracking its performance based on price returns, with adjustments made for operational fees. This structure is designed to offer investors a direct link to the performance of XRP, enhancing accessibility and investment opportunities in the digital currency.
Beyond Grayscale, other firms such as CoinShares and Bitwise have also entered the fray, filing their own applications for XRP-based ETFs. This trend signifies a burgeoning institutional interest in structured investment products centered around XRP, highlighting its growing prominence in the crypto market.
In an earlier statement made in January, Ripple Labs President Monica Long expressed optimism about the potential for an XRP ETF, suggesting it could become a reality under the new Trump administration. This administration has pledged to foster crypto innovation within the United States and to support local businesses in the burgeoning digital asset sector.
In addition to these developments, trading volumes on XRP-native applications have been experiencing a notable uptick, further solidifying XRP’s appeal among investors. Notably, swap volumes on the XRP Ledger’s decentralized exchange (DEX) surpassed the $400 million mark in January, ultimately exceeding $1 billion for the first time since the launch of its automated market maker feature in May. This milestone has led many to believe that 2024 could be a truly “monumental” year for XRP and its community.