Grayscale Investments officially filed to convert its Grayscale XRP Trust into a spot exchange-traded fund (ETF) at the New York Stock Exchange (NYSE). If approved, the trust—currently holding $16.1 million in assets—will transition into a fully regulated investment vehicle for XRP.

This move is part of Grayscale’s broader push to bring more crypto-based ETFs to market, following its recent applications for Litecoin and Solana ETFs. 

Grayscale's latest 19b-4 filing outlines key details about the proposed XRP ETF:

• Coinbase Custody Trust will act as the fund’s custodian, ensuring secure storage of XRP.

• BNY Mellon Asset Servicing will serve as the transfer agent.

• The ETF will be listed on NYSE Arca, pending regulatory approval.

This structured approach aims to address past regulatory concerns about custody, compliance, and market surveillance—potentially improving the chances of SEC approval.

Grayscale's XRP ETF, if approved, would:

• Provide regulated exposure to XRP for traditional investors.

• Increase institutional adoption of the token.

• Boost liquidity and price stability in the XRP market.

A Changing Regulatory Landscape

Grayscale’s filing comes at a time when the U.S. Securities and Exchange Commission (SEC) is experiencing major shifts. The recent departure of former SEC Chair Gary Gensler and the appointment of crypto-friendly figures under President Donald Trump’s administration have sparked optimism about regulatory changes.

The SEC approved spot Bitcoin and Ethereum ETFs last year, paving the way for other cryptocurrencies like XRP, Solana, and Litecoin to receive similar treatment. With a new crypto task force led by SEC Commissioner Hester Peirce, the regulatory agency is now focusing on clear guidelines for digital assets, registration paths, and enforcement priorities.

The Growing Race for Crypto ETFs

Grayscale is not alone in its efforts to expand the crypto ETF market. CoinShares, Bitwise, ProShares, WisdomTree, and REX Shares have all submitted filings for XRP-based ETFs, signaling strong institutional interest in the token.

Meanwhile, the SEC’s recent lack of immediate action on the Solana ETF filing suggests a more detailed review process. However, with the new administration’s pro-crypto stance, analysts expect a wave of approvals for additional spot crypto ETFs in the coming months.