Grayscale Pushes Forward with Plans to Launch XRP ETF

By: Eliza Bennet

In a significant move for the digital asset market, Grayscale Investments has taken steps to convert its XRP Trust into an exchange-traded fund (ETF). Having filed a 19b-4 Form with the New York Stock Exchange, Grayscale is making strides to transition its existing investment product into an ETF, following its introduction on September 12. The XRP Trust currently holds $16 million, accounting for about 1.2% of the total assets under management for XRP exchange-traded products, as noted by CoinShares.

Reflecting the rising interest in digital assets, a JPMorgan report has projected that XRP exchange-traded products could potentially attract investments ranging between $4 billion to $8 billion. Such estimates are based on existing market data from Bitcoin and Ethereum products. The anticipation of launching an XRP ETF has sparked excitement within the crypto community, fueled by speculations around futures contracts for XRP and future possibilities for Solana on the Chicago Mercantile Exchange (CME).

Despite taking such progressive steps, obstacles remain, notably the legal disputes from the US Securities and Exchange Commission (SEC) claiming XRP to be an unregistered security. Yet, optimism persists among industry analysts, as indicated by Bloomberg ETF analysts Eric Balchunas and James Seyffart, who foresee a burgeoning wave of crypto ETFs in the near future. However, regulatory approval timelines remain undefined.

Adding a layer of political nuance, reports have surfaced that former President Donald Trump is engaging in discussions with Ripple regarding the integration of XRP, USD Coin, and Solana into a potential national digital asset reserve. Meanwhile, beyond Grayscale, several other financial institutions such as Bitwise, Canary Capital, 21shares, WisdomTree, and Rex & Osprey are also awaiting approval for their respective spot XRP ETFs.