Grayscale Takes Next Step: Files to Convert XRP Trust into Spot XRP ETF

Grayscale Files 19-b Form to Launch Spot XRP ETF on NYSE

Grayscale Takes Next Step– Grayscale, a prominent US-based asset management firm, has officially filed a 19-b form with the New York Stock Exchange (NYSE) to convert its XRP Trust into a spot XRP Exchange-Traded Fund (ETF). This filing marks a significant move as Grayscale looks to provide more accessible exposure to XRP for investors.

Transitioning from Trust to ETF

The goal of the filing is to transform Grayscale’s existing XRP Trust into a spot ETF, allowing investors to directly track XRP’s price movements on the NYSE. Currently, the XRP Trust holds $16.1 million in assets, and with the launch of the ETF, Grayscale expects further inflows, expanding the fund’s size.

XRP ETF to Offer Exposure to Digital Asset

This development means American investors will soon be able to leverage the ETF to incorporate XRP into their investment portfolios. A spot ETF typically offers a more direct way for investors to gain exposure to a specific asset class— in this case, XRP—without directly purchasing the cryptocurrency itself.

Grayscale Joins Growing List of Asset Managers Submitting XRP ETF Proposals

Grayscale’s filing makes it the seventh asset management firm to propose such an ETF. The XRP Trust, which was initially established in 2023 after a favorable ruling for Ripple against the SEC by Judge Analisa Torres, has shown impressive performance. In 2024, the Trust saw a remarkable 300% increase in share value, drawing investor attention.

No Active Management for the New XRP ETF

It’s important to note that the new XRP ETF will not engage in active management. The fund will passively track XRP’s market price, meaning it will not attempt to profit from or hedge against price fluctuations.

This filing marks a key step in the growing trend of financial products that bridge the gap between traditional finance and the cryptocurrency market. With Grayscale’s reputation and the recent performance of the XRP Trust, many are watching closely to see how this move will impact the digital asset market.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.