Two major ETF issuers advanced their XRP-based initiatives on Friday (1). Grayscale began trading for its XRP Trust Fund, while 21Shares submitted an official application for an XRP ETF.
While Grayscale's Trust Fund has the potential for eventual conversion into an ETF, its long-term appeal to clients remains uncertain.
The Race for XRP ETF
Grayscale has announced that its XRP Trust is now open to eligible accredited investors. Launched two months ago, the trust is seen as a possible precursor to an ETF. The company has already converted its Bitcoin trust into an ETF after gaining regulatory approval and is currently working on converting another fund into an ETF.
Grayscale’s XRP Trust is one of the first securities exclusively invested in and deriving value from the price of XRP…avoiding the challenges of purchasing, storing, and securing the asset directly. The fund’s shares are designed to track the market price of XRP,” the company said on its website.
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The possibility of an XRP ETF is growing increasingly popular in the crypto world. Ripple’s CEO called eventual regulatory approval “inevitable,” and several companies have already submitted their own applications. Grayscale’s non-ETF trust strategy has been reliable in the past, allowing for early profits.
However, this more flexible structure also has its drawbacks: the price of Trust XRP actually fell when trading began.
Grayscale Trust XRP Price Drop. Source: Grayscale
While Grayscale’s Bitcoin Trust (GBTC) was an early leader in the ETF market, it quickly lost ground to newer competitors. The firm even launched a second Bitcoin-based fund in an attempt to regain market share.
If the SEC approves an XRP ETF soon, Grayscale will have plenty of competition. According to the filing, investment firm 21Shares is also entering the fray. They are already a Bitcoin ETF issuer and have also filed for a Solana ETF.
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However, the SEC has been very tight-lipped about the likelihood of approving these products. Once the Commission officially starts confirming or denying these applications, they will be stuck with a series of deadlines.
In other words, they will either have to advance their efforts or explicitly block them. For now, this ambiguity is still sustainable and shows no signs of moving forward.
The post Grayscale Begins XRP Fund Trading; 21Shares Files for ETF appeared first on BeInCrypto.
