Grayscale has directed a 19b-4 Form to the NYSE which represents a step toward transforming its XRP Trust into an ETF. The trust operates from September with $16 million in assets making up 1.2% of the total XRP ETP holdings.
Market Potential
The JPMorgan analysts predict XRP ETPs will draw investments ranging from $4 billion to $8 billion by modeling the acceptance patterns of Bitcoin and Ethereum products. The projected market potential relies on relative market capitalization values together with current success of crypto ETF products.
Regulatory Landscape
The SEC’s legal dispute regarding XRP security status creates obstacles for obtaining approval of the product. Public sentiment regarding XRP has shown positive signs because of multiple reports about government interest and alleged CME plans to introduce XRP futures contracts.
Filing Details
The application of Grayscale joins five other firms seeking XRP ETF approval while demonstrating increased institutional demand for XRP products despite regulatory uncertainties. The CME futures launch alongside government adoption may create conditions that would boost approval possibilities.
