Grayscale Seeks SEC Approval to Convert XRP Trust into ETF

Grayscale Investments aims to convert its XRP Trust into an exchange-traded fund, reflecting a growing institutional interest in XRP-based investment products.

Summary:

• Grayscale Investments has applied to the U.S. Securities and Exchange Commission (SEC) to transform its existing XRP Trust into an exchange-traded fund (ETF) listed on the New York Stock Exchange (NYSE).
• The proposed ETF aims to provide investors with direct exposure to XRP's performance, adjusted for operational fees.
• Other asset management firms, including CoinShares and Bitwise, have also filed applications for XRP-based ETFs, reflecting a growing institutional interest in structured XRP investment products.
• Ripple Labs' president, Monica Long, has expressed optimism about the potential approval of an XRP ETF under the current U.S. administration.
• Trading volumes on XRP-native platforms have surged, with the XRP Ledger's decentralized exchange (DEX) surpassing $1 billion in swap volumes in January 2025.

Grayscale Investments, a prominent crypto asset management firm, has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to convert its existing XRP Trust into an exchange-traded fund (ETF) to be listed on the New York Stock Exchange (NYSE).

Currently operating as a Delaware statutory trust, Grayscale's XRP Trust manages over $16 million in XRP assets. The proposed ETF would continue to hold XRP as its primary asset, tracking its price performance on a return basis adjusted for operational fees. This structure is designed to offer investors direct exposure to XRP's market movements within a regulated framework.

Grayscale's initiative aligns with a broader industry trend, as firms like CoinShares and Bitwise have also filed applications for XRP-based ETFs. This wave of filings indicates a growing institutional appetite for structured investment vehicles centered on XRP.

In a related development, Monica Long, president of Ripple Labs, the company behind XRP, recently expressed optimism about the potential approval of an XRP ETF. She suggested that such a financial product could "soon be a reality" under the current U.S. administration, which has signaled support for crypto innovation and domestic businesses.

Meanwhile, XRP-native applications have experienced a significant uptick in activity. The XRP Ledger's decentralized exchange (DEX) reported swap volumes exceeding $1 billion in January 2025, marking the first time this milestone has been reached since the introduction of its automated market maker feature in May 2024. This surge underscores the growing popularity of XRP among investors and the expanding utility of its associated platforms.

The convergence of these developments reflects a broader trend of increasing institutional interest in XRP and its associated technologies. The potential approval of XRP-focused ETFs could further integrate XRP into traditional financial markets, offering investors regulated avenues to engage with this digital asset.