Grayscale Seeks to Transform XRP Trust into Exchange-Traded Fund

The proposal arrives during a period when several asset management firms are similarly aiming to secure regulatory approval for XRP-focused funds.

Grayscale’s application, filed with the Securities and Exchange Commission, lays out the blueprint for converting the current XRP Trust into a listed product on the NYSE. The trust reportedly manages about $16.1 million in assets and is designed to mirror XRP’s market value minus associated fees.

Under this structure, digital holdings are maintained by a dedicated custodian, ensuring they are stored in a regulated environment that meets institutional standards.

Should the SEC endorse the transformation, the revised fund would allow its shares to be bought and sold much like traditional stocks, enabling both institutional and retail investors to gain exposure to XRP without navigating direct ownership or handling crypto wallets.

This approach aims to streamline the investment process, potentially attracting market participants who have been hesitant to engage with digital assets due to custody or regulatory concerns.

19B-4 Filed to Convert Grayscale XRP Trust to a spot XRP ETF, Source: X

Grayscale’s recent activity comes amid a wider scramble by companies looking to introduce crypto-themed ETFs. In particular, other asset managers have also submitted filings to bring XRP-linked products to market, underscoring the heightened interest in this digital asset.

Ripple’s token ranks as the third largest cryptocurrency by market value—reportedly near $180 billion—and is trading around $3.138, marking a modest 8% retreat from its all-time high.

Source: BNC XRPLX

Analysts have noted that this relatively mild decline stands in contrast to many other major cryptocurrencies, which have suffered more significant losses over the same period.

This announcement follows a series of ETF initiatives from Grayscale, including proposals focused on other digital assets like Solana and Litecoin. The firm’s ongoing efforts highlight a strategic push to diversify offerings and expand pathways for regulated crypto investing.

Despite no marked change in XRP’s price following the filing, market observers are watching closely to see whether a successful ETF launch could broaden adoption and shift overall sentiment.

If approved, the proposed Grayscale XRP ETF would mark another milestone for mainstream acceptance of digital currencies. By converting its trust into an exchange-traded product, Grayscale aims to capture an audience that prefers the familiarity of traditional securities exchanges.