Grayscale Seeks XRP ETF Approval as Trump-Era Regulators Warm to Crypto

NYSE Arca has filed an application with the SEC seeking to convert Grayscale’s XRP Trust into an exchange-traded fund.

If approved, Coinbase Custody Trust Company, LLC will serve as the custodian. At the same time, BNY Mellon Asset Servicing will act as the fund’s transfer agent, according to a 19b-4 filing submitted Thursday.

Grayscale’s XRP Trust is one of several investment vehicles the firm has converted or is in the process of converting amid surging demand for digital asset-based investment offerings. 

The move follows the firm’s successful conversion of its Bitcoin Trust into a spot ETF on January 11, 2024, and its Ethereum Trust into a spot ETF on July 23, 2024.

Grayscale has also sought SEC approval to convert its Digital Large Cap Fund—holding Bitcoin, Ethereum, Solana, XRP, and Avalanche—into a diversified multi-crypto ETF. 

In January 2025, the firm rebalanced the fund, increasing Bitcoin and Ethereum’s share to 90% while replacing Avalanche with Cardano.

Issuers are rushing to gain approval for new crypto-based ETFs after Donald Trump secured a second presidential term in November. Along the campaign trail, Trump promised to shore up US regulations while making the country the crypto capital of the world.

Grayscale’s Trust holds roughly $16.1 million in assets under management. Its shares are held by American investor accounts seeking exposure to XRP “without the cost and complexity of purchasing the asset directly,” according to the filing. 

Investment trusts are closed-end funds that have a fixed number of shares, while ETFs are open-end funds that generate shares based on investor demand. 

As such, ETFs are typically more suitable investment vehicles to meet demand for an asset such as XRP, though that depends on investor preferences and market conditions.

In any case, investor demand for XRP has proved particularly strong in recent weeks, with the token nearly breaking its all-time high of $3.40 earlier this month. XRP is trading at $3.13, up more than 525% in the past year.

Investor interest in digital assets has soared in recent months, fueled by the launch of the widely popular spot Bitcoin and Ethereum ETFs in the U.S. from major financial institutions, including BlackRock and Fidelity.

Asset managers such as Rex Shares, Canary Capital, and 21 Shares have applied to launch XRP exchange-traded funds in recent months. At the same time, issuers have refiled a batch of previously rejected Solana ETF applications earlier this month. 

The filings form part of a broader crypto ETF boom under the crypto-friendly Trump administration, with issuers also applying to launch funds tracking the prices of Chainlink, Cardano, and Polkadot, as well as newer meme coins such as Official Trump (TRUMP) and BONK.

Edited by Sebastian Sinclair