NYSE Arca Advances Grayscale XRP Trust Spot ETF Conversion

NYSE Arca Submits Proposal for XRP Spot ETF

NYSE Arca, a subsidiary of the New York Stock Exchange, has taken a significant step toward converting Grayscale's XRP Trust into a spot exchange-traded fund (ETF). The move was formalized through the submission of a 19b-4 filing, marking the second phase of the regulatory approval process.

Key Partners and Fund Details

The Grayscale XRP Trust, valued at approximately $16.1 million, is one of the largest XRP investment funds globally. Coinbase Custody Trust Company, LLC will serve as the custodian, while BNY Mellon will handle administration and transfer agency services. The trust currently provides U.S. investors with indirect exposure to XRP.

Regulatory Process and Market Context

The 19b-4 filing triggers the SEC's review process, which includes publication in the Federal Register. This follows recent approvals of Bitcoin and Ethereum ETFs in 2024, indicating a potential shift in regulatory stance under the new administration. The broader market is seeing increased interest in crypto ETFs, with proposals for assets like Dogecoin, Litecoin, and Solana.

Industry Implications

The initiative reflects the growing integration of traditional financial mechanisms with digital assets. If approved, it could further legitimize cryptocurrencies and expand investment opportunities in the sector. This move aligns with the SEC's recent openness to crypto-based financial products.