Grayscale Files Formally with the U.S. SEC for an XRP Exchange Traded Fund (ETF)

Grayscale, a renowned manager of cryptocurrencies, filed a formally with the U.S. Security and Exchange Commission (SEC) for an XRP exchange traded fund (ETF).

Grayscale has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an XRP exchange traded fund (ETF).

The Grayscale XRP Trust will hold XRP and aims to provide investors with a convenient and cost-effective way to access the cryptocurrency without having to directly purchase and store it themselves.

According to the filing, the trust will have assets valued at around $16.1 million.

"Grayscale is dedicated to driving innovation within ETFs, and this filing marks our next step in expanding investor access to digital asset and DeFi markets," said Dave LaValle, Grayscale's Global Head of ETFs, in a statement.

The application to convert Grayscale's XRP trust into an ETF is part of the company's broader push into cryptocurrencies. Grayscale has previously filed for ETFs linked to Solana, Dogecoin, and Litecoin, among others.

Hope for a favorable regulatory environment for cryptocurrencies has grown with the Trump administration.

The upcoming appointment of Paul Atkins, a known supporter of cryptocurrencies, to lead the SEC could pave the way for a new era in cryptocurrency regulation.

Within the community, there is a perception that Atkins will adopt a less stringent approach compared to the current SEC head, Gary Gensler.

However, even with this shift, hurdles remain for XRP.

XRP ETF Faces Legal Obstacles, Litecoin May Get Preference

Despite optimism, Bloomberg Law analyst James Seyffart highlights challenges in the SEC approving an XRP ETF.

The SEC's classification of XRP as a security, a characterization that an ETF is designed to avoid, poses a significant impediment.

As Seyffart notes, a Litecoin ETF may be more likely to receive approval since Litecoin has not been explicitly branded as a security and is thus less contentious.

Despite these obstacles, Ripple head Monica Long remains upbeat about XRP's future.

In a recent statement, she hinted at the possibility of an ETF approval "very soon," touting it as a major victory in the burgeoning landscape of crypto ETFs.

Several other fund companies, including Bitwise, Wisdom Tree, and, most recently, Canary, have also filed for XRP ETFs, citing strong institutional demand for the cryptocurrency.

Ultimately, the approval of any XRP ETF will hinge on the resolution of the ongoing court battles surrounding Ripple.