Key Information:
- Grayscale Investments has filed an application with the SEC to convert its XRP Trust into an ETF aimed for listing on the New York Stock Exchange.
- The anticipated ETF would continue to hold XRP as its main asset and will track its performance based on price returns.
Crypto major Grayscale Investments has filed an application with the Securities and Exchange Commission (SEC) to change its XRP Trust into an exchange-traded fund (ETF), which is set to be listed on the New York Stock Exchange (NYSE). The current product operates as a Delaware statutory trust, managing over $16 million in XRP as of Friday. This proposed ETF would keep XRP as its main asset and follow its performance based on price returns, factoring in operational costs to give investors a direct connection to XRP’s performance.
Additionally, other firms like CoinShares and Bitwise have also indicated their interest in XRP-based ETFs, reflecting an increasing institutional desire for investment products linked to XRP.
Earlier this month, Ripple Labs president Monica Long noted that an XRP ETF could “soon be a reality” under the new Trump administration, which has vowed to foster crypto innovation in the U.S. and back domestically founded businesses.
As trading activity on XRP-focused applications rises, swap volumes on the XRP Ledger’s decentralized exchange have surpassed the $400 million milestone in January, marking over $1 billion for the first time since the automated market maker feature was introduced in May. Some analysts believe that 2024 will be a pivotal year for the token.
