Grayscale Files Proposal to Convert XRP Trust into Exchange-Traded Product (ETP)

On Thursday, asset manager Grayscale Investments filed a proposal with the U.S. Securities and Exchange Commission (SEC) to convert XRP Trust into an Exchange-Traded Product (ETP). This move marks a step toward greater regulatory clarity in the U.S. cryptocurrency landscape.

Grayscale Enters the XRP ETF Space

Grayscale's 19b-4 filing with the SEC seeks to provide a regulated avenue for investors to invest in XRP. With approximately $16 million in assets under management, Grayscale Trust is one of the largest XRP investment funds globally.

By converting XRP Trust into an ETP, Grayscale aims to provide easier access for investors to the coin, eliminating the costs and complexities of directly purchasing it.

Typically, ETFs are offered with lower management fees and minimum investment thresholds compared to trusts. As a result, Grayscale’s ETP is expected to gain increased institutional acceptance. Additionally, institutions such as banks and pension funds, which are not allowed to invest in Trusts, will now be able to do so in the ETP.

According to the filing, BNY Mellon and Digital Currency Group are some of the entities involved in the proposed XRP ETP. BNY Mellon, a leading investment bank, will serve as the administrator and transfer agent for the Trust.

Foreside Fund Services will act as the marketing agent for the Trust, while CoinDesk Indices will calculate the price of XRP.

Sponsors anticipate that shares in the ETP will fluctuate based on the market price of XRP, and the amount of XRP represented by the shares will decrease as the Trust fees are paid in XRP.

Grayscale’s decision to convert XRP Trust into an ETP follows similar moves by other asset managers. To date, six asset management companies have filed applications for XRP-related ETFs, including Canary Capital, WisdomTree, Bitwise, 21Shares, CoinShares, and Tuttle Capital Management.

XRP Moves Closer to Regulatory Clarity in the U.S.

Grayscale’s potential ETP launch is a significant step for XRP in obtaining greater regulatory clarity in the U.S. This is especially important given the ongoing legal battle between Ripple and the U.S. SEC.

In December 2020, the SEC filed a lawsuit against Ripple and two of its executives, Brad Garlinghouse and Christian A. Larsen, accusing them of selling $1.3 billion worth of XRP in an unregistered securities offering.

The appeals process is still ongoing in the Second Circuit Court of Appeals as of January 2025, with a decision yet to be made. Legal experts believe the case could drag on until the end of the year.

However, there have been reports that the SEC has removed information about the lawsuit against Ripple from its website. Commenting on these reports, attorney Jeremy Hogan said that the court does not care about what the SEC does on its website, emphasizing that the case is still ongoing.

Nevertheless, many members of the XRP community are optimistic that the case will be resolved soon, especially with the emergence of a more crypto-friendly government under President Donald Trump. Garlinghouse recently confirmed discussions with Trump regarding the addition of XRP to the U.S. strategic reserves.

Temukan berita dan artikel lainnya di Google News