- The shifting regulations in the US have fund managers excited at the prospect of new crypto ETFs.
- Financial institutions have begun filing ETF proposals for all manner of projects since Trump’s inauguration last week.
- Grayscale, a key player in the TradFi space, is leading the charge by filing documentation to convert their XRP ($3.09) Trust into a spot ETF.
The changing regulatory landscape in the United States has fund managers frothing at the mouth.
The new-look Securities and Exchange Commission (SEC) appears likely to show more leniency toward crypto products, including spot ETFs.
Over the past week, financial institutions have been trying their luck, filing ETF proposals for memecoins like Bonk, Melania and Dogecoin.
However, most of the community expected some…er…less memey projects to seek (and likely receive) ETF approval under the Trump administration.
XRP may be the first racer off the blocks, and investment managers Grayscale want to ensure they’re ready.
Related: Trump’s Order Shakes Bitcoin’s Cycle: Bitwise CIO Sees $200K Future Amid ETF Boom
Grayscale and Cryptocurrency’s Strong Working Relationship
Grayscale has long been one of the most important TradFi institutions regarding crypto.
Sure, BlackRock gets all the attention now, but Grayscale was one of the first to mingle Bitcoin with the stock market. Way back in 2013, they released the Grayscale Bitcoin Trust, and have been creating similar products ever since.
The Trusts provided investors access to a pool of BTC ($104,427.11) held by Grayscale. So, it didn’t provide direct exposure to Bitcoin’s price movements, but it was as close as you’d get pre-approval.
In fact, many believe it was Grayscale’s legal battle with the SEC that kick-started the eventual legalisation of spot crypto ETFs in the US.
Once the wave of spot ETFs came through, Grayscale began the process of converting their trusts to exchange-traded funds – starting with Bitcoin.
Now, the team is gearing up to transform their XRP Trust into a spot ETF. Spot funds have proven to be a significantly more appealing investment vehicle for traditional markets, and Grayscale hopes the conversion will improve accessibility to XRP.
Who Will Win the ETF Race? XRP, SOL ($236.56) and LTC ($127.18) Leading the Way
Grayscale is far from the only fund manager interested in an XRP ETF.
There’s an ongoing tussle between several big-name projects – including XRP, Solana and Litecoin – to see who will get approval from the SEC first.
Active crypto ETF filings, source: KaikoMany institutions are hedging their bets and submitting filings for all three.
My latest crypto ETF check-in rounds up a week+ of developments.
–@REXShares & @OspreyFunds floating ETFs linked to TRUMP ($25.73), BONK, DOGE ($0.33), etc.
–@Grayscale proposes litecoin and solana ETFs
–@CoinSharesCo lays out XRP fund plan
-Tuttle Capital’s trying for leveraged crypto ETFs… https://t.co/jZYrh3EzBS
— Ben Strack 
(@strack_ben) January 29, 2025
CoinShares and Bitwise are two other fund managers looking toward a potential XRP ETF approval in the coming months.
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