Grayscale Joins The Race To Get XRP ETF Approval
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
It has been a year since Bitcoin ETF finally emerged in the US, and only a short time later, Ethereum ETF also emerged on US stock exchanges. Now, companies that managed to push the previous two crypto funds are entering a new race to get XRP ETF approved.
Grayscale Wants An XRP ETF, And It’s Using A Tested Strategy To Get It
Grayscale is the latest company to join the race, as it filed an application with the US Securities and Exchange Commission (SEC), seeking to convert its XRP Trust into an ETF. If the regulator approves the application, the XRP ETF will emerge on the New York Stock Exchange (NYSE).
This time, however, Grayscale already has experience with how to create an application and a fund that the SEC might approve relatively quickly, given the fact that it had already managed to convert its BTC and ETH investment trusts into ETFs, and get them listed on public exchanges.
The XRP ETF will primarily hold XRP itself, tracking the coin’s price returns, while accounting for operational fees. This way, it will offer investors direct exposure to the third-largest crypto’s performance.
Apart from Grayscale Investments, Bitwise and CoinShares are also in the race for the XRP ETF. Both have submitted their S-1 filings to the securities regulator, but the SEC has yet to make a decision. There are also other firms that are trying to get DOGE and SOL ETFs approved as well.
XRP ETF Approval Could Be On A Rocky Road
Looking back, the regulator took over 10 years to approve a Bitcoin ETF, only to then simultaneously approve 11 different applications. Doing so opened the floodgates, and companies who wanted to make crypto mainstream have jumped on the opportunity.
As mentioned, ETH ETF emerged mere months after Bitcoin ETF, suggesting that XRP ETF might not wait too long before it emerges. With that said, the US SEC has been locked in a legal battle with Ripple Labs, the company that created XRP, and this situation might make the process more complicated.
Finally, with Trump as the new president, and his government claiming to be pro-crypto, the situation might yet play out in XRP’s favor.
