Grayscale Files Application to Convert XRP Trust into ETF on NYSE

Grayscale has filed a 19b-4 form with the New York Stock Exchange (NYSE) on January 30 to convert its XRP Trust product into an exchange-traded fund (ETF). The XRP Trust was first launched on September 12 and currently manages assets worth $16 million, which represents 1.2% of the total assets managed by exchange-traded products (ETPs) based on XRP, according to a CoinShares report. Since its launch, the cryptocurrency community has speculated about the possibility of an ETF filing for XRP.

Crypto ETF Wave

One of the main hurdles to the approval of an XRP ETF is the absence of futures contracts for this asset previously. However, a leaked page from CME hinted that futures contracts for XRP and Solana (SOL) might be launched on February 10. Although the page was quickly removed and CME has not made an official statement, Bloomberg ETF analysts Eric Balchunas and James Seyffart predict a “crypto ETF wave” this year, including for XRP. However, they also noted that the approval process may take longer, given the ongoing lawsuit by the U.S. Securities and Exchange Commission (SEC), which claims that XRP is an unregistered security.

Rising Chances for XRP ETF Approval

The chances of XRP ETF approval may increase, as reports suggest that President Donald Trump is in discussions with Ripple about potentially adding XRP, USD Coin (USDC), and Solana (SOL) to the U.S. digital asset reserves. In addition to Grayscale, five other companies—Bitwise, Canary Capital, 21Shares, WisdomTree, and Rex & Osprey—are also awaiting approval for their XRP ETFs.

XRP Spot ETF

If approved, this fund would be the first spot ETF to directly track the price of XRP, expanding investor access to the cryptocurrency. The filing documents released last Thursday mention that Coinbase Custody will serve as the asset custodian, while BNY Mellon will manage the fund transfer services.

Strategic Moves Under Crypto-Friendly Regulations

This initiative aligns with the commitment of the Donald Trump administration, which returned to power in November, to make the U.S. a global hub for crypto innovation. Grayscale, which previously succeeded in converting Bitcoin Trust (January 2024) and Ethereum Trust (July 2024) into ETFs, is now expanding its portfolio. They have also filed for an ETF for the Digital Large Cap Fund—a portfolio that includes Bitcoin, Ethereum, Solana, and XRP. In the January 2025 rebalancing, the allocation for Bitcoin and Ethereum will increase to 90%, replacing Avalanche with Cardano.

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