NYSE Arca Explores Possibility of Converting Grayscale’s XRP Trust into Spot ETF with Coinbase and BNY Mellon Involvement
The post NYSE Arca Explores Possibility of Converting Grayscale’s XRP Trust into Spot ETF with Coinbase and BNY Mellon Involvement appeared on BitcoinEthereumNews.com.
NYSE Arca moving to convert Grayscale’s XRP Trust into a spot ETF reflects a significant shift in the cryptocurrency investment landscape. As institutional interest in digital assets escalates, this initiative underscores Grayscale’s adaptability in the evolving market. “Its shares are held by American investor accounts seeking exposure to XRP ‘without the cost and complexity of purchasing the asset directly,’” notes the filing regarding Grayscale’s Trust. NYSE Arca’s application to transform Grayscale’s XRP Trust into a spot ETF highlights rising institutional interest in digital assets amid evolving regulations. Grayscale’s XRP Trust Conversion: A Transformative Step for Digital Assets Recently, NYSE Arca filed an application with the SEC to transform Grayscale’s XRP Trust into an exchange-traded fund (ETF). This marks a pivotal moment in the crypto investment market, especially as the demand for diversified, digital asset-based investment products continues to gain momentum. Notably, if the SEC grants approval, Coinbase Custody Trust Company will handle custodial services while BNY Mellon Asset Servicing will manage the fund’s transfer operations. Recent Trends in Cryptocurrency Investments The industry has witnessed a notable trend towards the conversion and establishment of more accessible investment vehicles. Grayscale’s XRP Trust, managing approximately $16.1 million in assets, is among multiple trusts the firm is revitalizing. This move follows the successful transitions of its Bitcoin Trust into a spot ETF in January 2024 and the Ethereum Trust in July 2024. The urgency for such conversions can be attributed to surging institutional interest, exacerbated by the recent political climate which has emboldened new applications for various crypto ETFs. Impact of Political Shifts on Crypto Regulations The recent push for crypto ETF approvals coincides with Donald Trump securing a second presidential term, a factor that has galvanized expectations around more favorable regulations for digital assets. Investors are keenly watching as these political dynamics evolve.…
Filed under: News - @ January 31, 2025 1:16 am