Grayscale Seeks SEC Approval to Convert $16M XRP Trust to ETF

The world's third-largest cryptocurrency could gain mainstream investment access as Grayscale seeks SEC approval for first-ever XRP ETF product.

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DJ
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Finance Reporter
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Reviewed by: Paul Curcio
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Edited by: Ron Day

Grayscale Investments has filed to convert its $16.1 million XRP trust into an exchange-traded fund, according to a new filing with the Securities and Exchange Commission, marking the latest push to expand crypto investment products beyond Bitcoin.

The move could make XRP investing as simple as buying stocks, allowing everyday investors to gain exposure to the cryptocurrency without the technical hurdles of crypto exchanges and digital wallets. If approved, it would mark the first regulated XRP fund in U.S. markets.

The filing arrives amid a shift in crypto regulation, as Gary Gensler's exit from the SEC and Mark Uyeda's appointment as acting chair signals a potential turn toward more crypto-friendly policies.

The Trump administration has introduced executive orders supporting blockchain and stablecoins, which could encourage further crypto ETF approvals. Meanwhile, CoinShares and Bitwise have also filed for XRP ETFs, highlighting the race among asset managers to expand beyond Bitcoin products.

Crypto-Friendly Shift Drives Market Changes

The SEC’s response to Grayscale’s application will be closely watched as it could set a precedent for other altcoin ETFs. Asset managers have increasingly sought regulatory approval for ETFs tracking cryptocurrencies such as Dogecoin and Solana.

Wall Street’s push into crypto ETFs has accelerated amid these shifting regulatory conditions. REX Advisers and Osprey Funds recently filed for ETFs tied to $TRUMP, a cryptocurrency associated with President Trump, alongside other meme coins.

Read More: Trump's First Day Back Triggers Wave of New Crypto Products

Grayscale has already filed for Solana and Litecoin ETFs marking the latest step in its strategy to broaden regulated crypto investment options. The company's move follows successful launches of several spot Bitcoin ETFs, which drew billions in investor inflows during their first year of trading.

Coinbase Custody will handle the fund's assets, according to the filing, while the fund will track the CoinDesk XRP Price Index (XRX), pulling data from exchanges like Coinbase, Crypto.com, LMAX Digital, Kraken and Bitstamp.

XRP, the third-largest cryptocurrency with a $178 billion market cap, currently trades at $3.10, CoinMarketCap data shows. The token fell about 0.1% over the past 24 hours.

A graduate of The University of Texas, Arlington with a BA in Communications, DJ has covered retirement plans, mortgage news, and financial advisor trends. His background includes producing daily content, managing newsletters, and engaging with industry experts. DJ is excited to contribute to ETF coverage and learn more about the $10-trillion-dollar ETF industry. Outside of work, he enjoys exploring New York City's food scene, anime, and video games. 

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