Grayscale, a prominent cryptocurrency investment firm, made a significant move in the crypto market by filing a 19b-4 Form with the New York Stock Exchange (NYSE) to convert its XRP Trust into an exchange-traded fund (ETF) on Jan. 30. This development marks a pivotal moment for XRP as it could potentially lead to increased mainstream adoption and investment opportunities for the digital asset.
The XRP Trust was initially introduced on Sept. 12 and has since garnered significant attention within the crypto community. With a current holding of $16 million, equivalent to 1.2% of the total assets under management of XRP exchange-traded products (ETP), according to CoinShares, the trust has already established itself as a notable player in the market.
Speculation surrounding the possibility of an XRP ETF has been rife since the introduction of the trust, with many industry experts and analysts weighing in on the potential impact of such a move. JPMorgan, for instance, estimated that XRP ETPs could attract between $4 billion and $8 billion, based on the success of Bitcoin (BTC) and Ethereum (ETH) products.
One of the main hurdles facing the approval of an XRP ETF has been the lack of previous futures contracts for the asset. However, a leaked CME page hinted at the launch of XRP and Solana (SOL) futures on Feb. 10, although no official statement has been released by CME.
Despite the uncertainties surrounding XRP futures contracts, Bloomberg ETF analysts Eric Balchunas and James Seyffart have predicted a “wave of crypto ETFs” this year, including XRP funds. However, they acknowledged that regulatory challenges, such as the ongoing SEC lawsuits claiming XRP is an unregistered security, could delay the approval process.
In a potentially game-changing development, President Donald Trump is reportedly in talks with Ripple about adding XRP, USD Coin (USDC), and SOL to a digital asset stockpile for the country. This could significantly boost the chances of an XRP ETF approval and further solidify XRP’s position in the market.
In addition to the Grayscale XRP Trust, several other spot XRP ETFs, filed by Bitwise, Canary Capital, 21shares, WisdomTree, and Rex & Osprey, are awaiting approval. With the growing interest in XRP ETFs and the potential for increased investment inflows, the future looks promising for XRP as it continues to make strides towards mainstream adoption.