The exchange-based regulatory authority NYSE Arca has asked the U.S. Securities and Exchange Commission to allow Grayscale’s XRP Trust to transition into an exchange-traded fund format.
The filing submitted through the 19b-4 provisions names Coinbase Custody Trust to serve as fund custodian along with BNY Mellon Asset Servicing acting as transfer agent. As part of a strategic business plan, Grayscale continues to progress in converting a range of investment trusts into exchange-traded funds.
In December, the firm established another application for its Solana Trust to transform into an exchange-traded fund that signifies advancing institutional investment in digital assets. The approach follows the pattern established by Grayscale after changing Bitcoin and Ethereum trusts to ETFs in 2024.
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Institutional Interest in XRP ETFs Grows
The race for an XRP ETF is not limited to Grayscale; in November, Bitwise filed an application with the SEC to establish an ETF tied to its 10 Crypto Index Fund, which includes XRP.
The financial institution Ripple supports Bitwise’s creation of the Physical XRP ETP as a European investment product, giving investors direct exposure to XRP.
WisdomTree registered an XRP ETF entity within Delaware on November 25, and Canary Capital introduced its own ETF in October. The growing number of fund applications indicates that participants feel more comfortable with current cryptocurrency investment product regulations.
Crypto Community Reacts to Grayscale’s Move
The cryptocurrency sector reacted strongly to Grayscale’s filing of an XRP exchange-traded fund. The social media network X, formerly known as Twitter, experienced fast-growing discussions regarding the proposed ETF.
Most dedicated XRP investors reacted positively to the news by mentioning how they persevered through previous regulatory obstacles. Kraken Exchange joined the conversation by posting a meme highlighting the perseverance of XRP holders.
The post humorously depicted how investors had waited through years of market turbulence before reaching the milestone of an ETF application. Renowned crypto trader Olivia commented on the development, emphasizing its significance beyond the XRP community.
She suggested this move could be a turning point for broader crypto adoption and questioned whether it might catalyze XRP’s next major rally. Her tweet further fueled discussions about the potential for XRP to gain a stronger foothold in mainstream financial markets.
Regulatory Landscape and Future Outlook
Grayscale’s XRP Trust, which currently manages approximately $16 million in assets, is undergoing conversion to provide investors with increased access to XRP while operating under regulatory oversight.
This development follows a prolonged legal battle between Ripple and the SEC, which had previously cast uncertainty over the asset’s regulatory status.
The recent surge in crypto ETF applications coincides with a shift in the U.S. regulatory environment. Last week, President Donald Trump signed an executive order emphasizing the importance of digital assets in economic development and international leadership.
The order also called for the creation of a working group to explore the feasibility of a national digital asset stockpile. With regulatory clarity improving and institutional interest in cryptocurrency ETFs rising, market participants closely watch how the SEC will respond to these applications.
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