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XRP ETF Moves Closer as SEC Reviews Grayscale’s Proposal

XRP ETF Moves Closer as SEC Reviews Grayscale’s Proposal

DailyCoinDailyCoin2024/10/31 14:54
By:DailyCoin
  • Crypto ETFs have increased in popularity, gaining global attention.
  • SEC has considered Grayscale’s multi-asset ETF, boosting market optimism.
  • XRP-focused ETFs have faced hurdles but have seen rising interest.

Crypto ETFs are making waves in traditional finance, bringing a new level of accessibility to digital assets like Bitcoin and Ethereum . The excitement is now spilling over into other cryptocurrencies, with recent applications for XRP ETFs drawing increased attention. 

The growing interest in ETFs tailored to XRP suggests that demand for crypto diversification is rising, especially as ETFs simplify crypto investment for traditional investors. While Bitcoin ETFs have crossed key regulatory hurdles, XRP ETFs still face an uphill battle. 

XRP in the ETF Race—Why Ripple’s CEO Is All In

Applications from firms like Bitwise and Canary Capital reflect a new push for XRP to secure a place in the ETF market. Ripple’s CEO, Brad Garlinghouse , is confident in XRP’s ETF potential, seeing it as an “inevitable” product that will meet rising community demand.

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In October, Grayscale applied to convert its Digital Large Cap Fund (GDLC) into a multi-asset ETF, a groundbreaking move that could mark the first multi-asset crypto ETF on the market. The GDLC fund provides diversified exposure to assets like Bitcoin, Ethereum, Solana , and XRP . 

Grayscale aims to make these digital assets more accessible to investors by bringing them under a regulated ETF structure, which could appeal to those cautious about direct cryptocurrency exposure.

With the SEC now considering the application, Grayscale is closer than ever to achieving its goal. The SEC has opened a 45-90-day comment period, inviting public feedback on Grayscale’s proposal. 

ETF analyst Nate Geraci notes that GDLC’s portfolio—heavily weighted toward Bitcoin and Ethereum with allocations to assets like XRP—could work in its favor, as including major, established digital assets may appeal to the SEC’s cautious approach.

Will XRP ETFs Drive Crypto’s Next Big Surge?

XRP ETFs have garnered increased interest, yet regulatory uncertainties loom. Applications from companies such as Bitwise and Canary Capital signify a significant push to bring XRP into the ETF arena. 

While some experts believe the approval process may be lengthy due to XRP’s ongoing regulatory classification debate, the interest underscores the demand for crypto diversification. Ripple’s Brad Garlinghouse is unwavering, describing the introduction of an XRP ETF as “inevitable.” 

Ripple Labs CEO Brad Garlinghouse says "it’s just inevitable” that the company’s #XRP cryptocurrency will be offered through an exchange-traded fund https://t.co/xC5XiTdfA0 @Ripple @bgarlinghouse pic.twitter.com/DaYdraXzcu

— 𝗕𝗮𝗻𝗸XRP (@BankXRP) October 23, 2024

He argues that these products create “upward pressure” on prices, benefiting the market as a whole. Bitcoin’s path to ETF approval illustrates how challenging the process can be, but the recent wave of Bitcoin and Ethereum ETFs suggests a shift toward increased acceptance. 

Securing a position in the ETF market could broaden XRP’s appeal, especially among investors seeking exposure to a diverse selection of assets within a regulated framework. Since filing its application, Grayscale’s GDLC fund has shown signs of market optimism. 

GDLC’s discount to net asset value has narrowed from 30% to 17% over two weeks, reflecting investor confidence in a potential ETF approval. Other firms, such as VanEck, 21Shares, and NYSE Arca, have also filed applications to launch spot ETFs centered on altcoins like Solana, Litecoin, and, of course, XRP. 

On the Flipside

  • Approval for altcoin-based ETFs, especially for assets under SEC review, remains challenging.
  • Grayscale’s GDLC discount to NAV has narrowed, reflecting confidence in a multi-asset ETF.
  • Despite regulatory uncertainties, ongoing interest in XRP ETFs highlights demand for diversified crypto options.

Why This Matters

Grayscale’s push to convert its Digital Large Cap Fund into a multi-asset ETF and the rising interest in XRP-focused ETFs highlight a major shift toward diversified crypto investing. If successful, these developments could introduce XRP and other altcoins into the portfolios of traditional investors, transforming the landscape of regulated crypto assets.

To learn more about the potential impact of a Tether disruption on the cryptocurrency market, read here:
Ripple CEO Warns of Black Swan Event—Is Tether Under Pressure?

To learn more about the legal battle between Ripple and the SEC and its implications for the cryptocurrency market, read here:
Ripple Doubles Down Against the SEC—Here’s What’s at Risk

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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