Grayscale Pushes for XRP ETF Approval on NYSE Arca Amid Pro-Crypto Developments

• Grayscale filed to convert its XRP Trust into an ETF on NYSE Arca, managing $16M in assets.
• The SEC’s task force may ease crypto regulations as firms like Grayscale, ProShares, and Bitwise seek XRP ETF approvals.
• XRP shows mixed price trends, with a 44.9% 30-day rise but ongoing legal challenges from the SEC.

Grayscale Investments has submitted a filing to the U.S. Securities and Exchange Commission (SEC) to convert its XRP Trust into an exchange-traded fund (ETF). The proposed ETF would be listed on NYSE Arca, providing investors with regulated access to Ripple’s native token without directly purchasing the asset. 

Spot XRP ETF Application Details

The filing details Grayscale’s strategy to improve XRP investment options through easier purchasing procedures. Through the ETF structure Grayscale seeks to simplify investments and minimize costs while having their products monitored by a national securities exchange for regulatory compliance. Grayscale forms part of several firms including CoinShares and Wisdom Tree while seeking approval for XRP ETFs with other entities like ProShares and REX Shares and Bitwise Inc.

This surge in XRP ETF applications coincides with recent developments in U.S. politics. Donald Trump’s inauguration as the 47th U.S. President has fostered a pro-crypto environment, encouraging asset managers to introduce new crypto-related products. 

Grayscale applied for ETFs linked to Solana and Litecoin just a week before this filing. The company also recently launched its Bitcoin Miners ETF, offering exposure to publicly traded BTC mining firms like Riot, Marathon Digital, and Core Scientific.

Regulatory Context and SEC Developments

Under interim Chair Mark Uyeda, the SEC has formed a task force to develop a regulatory framework for the cryptocurrency industry. While the agency has approved ETFs tracking Bitcoin and Ethereum, its previous leadership classified most cryptocurrencies as securities, limiting crypto-related ETF options. 

The SEC is pursuing Ripple Labs in ongoing litigation because the company faces a $1.3 billion bill for alleged unregistered securities distribution of XRP. Market data about XRP shows conflicting price trend patterns.
 During the previous 24 hours, the token experienced a 0.6% drop, yet it lost almost 7% of its value throughout two weeks. XRP experienced a 44.9% price increase over the last 30 days as market analysts predict its value will exceed $4.5 to surpass its previous maximum of $3.4.