Since the approval of a spot Bitcoin ETF in January this year, the product has brought billions of dollars into the crypto market. Following the success of Bitcoin ETFs, the industry pushed for an ETH ETF which was eventually approved by the SEC six months later in July.
Consequently, the industry is now targeting ETFs for other cryptocurrencies including XRP. To fuel this initiative, Canary Capital and Bitwise recently applied for XRP ETFs, creating excitement across the XRP community as a launch of an exchange-traded fund could mean an influx of institutional money into the XRP market which could trigger an increase in the coin value.
SEC Confirms Grayscale ETF Change
In a post on X (formerly Twitter) earlier today, Nate Geraci, the president of ETF Store and the co-founder of ETF Institute, disclosed that the Securities and Exchange Commission (SEC) has acknowledged the proposal to convert Grayscale Digital Large Cap Fund (GDLC) into an ETF.
Grayscale Investments, an American digital asset management company, sought to convert its GDLC which included popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Avalanche (AVAX), into ETFs.
According to Geraci, the GDLC holds approximately 77% BTC, 17% ETH, and the rest in the other crypto coins. Grayscale aims to make these assets available and properly regulated for its investors by converting them to ETFs.
SEC has formally acknowledged filing to convert Grayscale Digital Large Cap Fund (GDLC) into an ETF…GDLC holds approx 77% btc, 17% eth, & remainder in sol, xrp, & avax.SEC now soliciting public comments & decision clock starts ticking. pic.twitter.com/5zl6vHmyKo
— Nate Geraci (@NateGeraci) October 30, 2024
Additionally, Geraci noted that the SEC is now soliciting public opinion, to collect comments from prospective investors.
Ripple CEO Believes XRP ETF is Imminent
Meanwhile, the CEO of Ripple, Brad Garlinghouse, has reaffirmed his confidence in an XRP ETF approval soon. Even though the blockchain company is currently embroiled in a long-running legal dispute with the SEC, Garlinghouse and his team of executives believe an XRP ETF is “inevitable.”
In an interview with Bloomberg, Garlinghouse noted that the XRP interest has grown, highlighting that there have been about two ETF filings around XRP in recent times, including Canary Capital Group and Btwise.
He opined that the industry would soon get an XRP ETF adding to the broader trend of more institutionalized participation in the crypto industry.
“I do think it (ETFs) creates upward pressure on the prices of many different crypto, including XRP,” … “and I think the XRP ETF would do quite well,” he added.
The post SEC Acknowledges Grayscale’s GDLC Coversion to ETF, Is an XRP ETF Underway? appeared first on Coinfomania.
