- Grayscale has filed with the SEC to convert its XRP Trust into an ETF, with Coinbase Custody as the custodian and BNY Mellon as the transfer agent, following its successful Bitcoin and Ethereum ETF conversions.
- This move comes amid growing institutional interest in crypto ETFs, with competitors like Bitwise, WisdomTree, and Canary Capital also seeking XRP ETF approval, while Trump’s administration pushes for crypto-friendly regulations.
Grayscale Investments is making another major move in the cryptocurrency investment space by seeking approval from the U.S. Securities and Exchange Commission (SEC) to convert its XRP Trust into an Exchange-Traded Fund (ETF). This application, filed by NYSE Arca, follows Grayscale’s broader strategy of transforming several of its investment products into ETFs.
Key Players in the Application
According to the filing, Coinbase Custody Trust will act as the custodian for the fund, while BNY Mellon Asset Servicing will serve as the transfer agent. This partnership underscores the increasing role of major financial institutions in cryptocurrency-related investment products.
Grayscale’s Ongoing ETF Expansion
Grayscale’s move to convert its XRP Trust into an ETF is part of a larger trend within the company. Last month, it applied to convert its Solana Trust (GSOL) into an ETF, reflecting rising institutional interest in Solana (SOL). The firm has also successfully transitioned its Bitcoin and Ethereum trusts into ETFs in 2024, further solidifying its reputation as a leader in crypto investment products.
Additionally, in October, Grayscale sought approval to convert its Digital Large Cap Fund into an ETF. This fund, managing over $520 million in assets, offers investors exposure to a diversified portfolio of cryptocurrencies, including Bitcoin, Ethereum, Solana, XRP, and Avalanche.
The XRP ETF Race Heats Up
Grayscale is not the only firm vying for an XRP ETF. In November, Bitwise applied to the SEC for an ETF based on its 10 Crypto Index Fund, which includes XRP. Meanwhile, WisdomTree registered an XRP ETF entity in Delaware on November 25, and Canary Capital made a similar move in October.
Ripple, the company behind XRP, has also backed Bitwise’s Physical XRP ETP (GXRP), previously known as the European XRP ETP, which provides European investors with direct exposure to XRP. Ripple CEO Brad Garlinghouse has expressed confidence that the evolving U.S. regulatory landscape will drive further demand for crypto-based ETFs.
Crypto ETFs Gain Momentum Under Trump Administration
The push for cryptocurrency ETFs has gained significant traction following Donald Trump’s re-election. Just last week, Trump signed an executive order aimed at advancing the digital asset industry in the United States. The order emphasizes the role of cryptocurrency in fostering innovation and economic growth and outlines the establishment of a working group to explore a potential national digital asset stockpile.
With regulatory clarity improving and institutional interest on the rise, the approval of an XRP ETF could mark yet another milestone in the mainstream adoption of cryptocurrency investment vehicles. The coming months will be crucial as the SEC reviews Grayscale’s latest application and considers the broader implications of crypto-based ETFs on the financial market.
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