Grayscale Files For Spot XRP ETF With The NYSE — What’s Next For XRP Price?

Crypto asset manager Grayscale applied to convert its XRP Trust to a spot XRP ETF. If the United States Securities and Exchange Commission (SEC) approves, the fund will be listed on the New York Stock Exchange. The successes of Bitcoin ETFs led investors to altcoin products in an attempt to replicate inflows. XRP bulls reacted positively to the news, but wider crypto sideways trading hindered more gains.

XRP Is Close To An ETF

With Grayscale’s application to convert its trust to a spot XRP ETF, the consensus is the market is at the cusp of approval. Although the process might take several months, the activities of institutional investors coupled with an easing regulatory landscape have raised appetite.

The grayscale move comes after similar efforts in Bitcoin and Ethereum while hinting at increasing investor exposure to digital assets. The trust currently holds about $16.1 million in assets, mirroring XRP’s value, which a custodian maintains according to institutional standards. Operating as a Delaware statutory trust, it tracks the price minus fees with assets held in Coinbase Custody Trust Company.

“Grayscale XRP Trust (the “Trust”) is one of the first investment vehicles that enable investors to gain exposure to the token underlying the XRP platform (“XRP”) in the form of a security while avoiding the challenges of buying, storing, and safekeeping XRP directly. Shares of the Trust (based on XRP per Share as indicated below) are designed to track the XRP market price, less fees and expenses,” Grayscale wrote.

If approved by the SEC, its shares will be traded more like stocks, opening up an investment window for traditional investors to increase their market exposure. Grayscale continues its institutional push to altcoins, having filed spot Solana and Litecoin ETFs. Other institutional players have also filed spot XRP ETF, with commentators anticipating more participation.

What’s Next For XRP Price?

XRP recorded slight gains after the announcement but lost gains following a bearish crypto market. At press time, the asset exchanges hand at $3.04, down 2% today and 3.6% in the last seven days. The weakened sentiments have wiped off several wins notched by altcoins. 

XRP maintains its position as the third largest crypto asset, with metrics pointing north. In recent weeks, institutional investors have mounted buying pressure on the asset with huge whale purchases. These factors spurred price projections above $6 in the next altcoin season.