Grayscale, a leading digital asset management firm, has submitted an application to the Securities and Exchange Commission (SEC) to convert its XRP Trust into an ETF (Exchange-Traded Fund). This move is seen as an extension of Grayscale’s aggressive push into the ETF market, following recent filings for Litecoin and Solana ETFs, as well as an ETF for Bitcoin miners. The XRP Trust, currently valued at approximately $16 million, is the result of Judge Analisa Torres’ rulings in the ongoing Ripple vs. SEC case.
This recent development from Grayscale has sparked speculation about the possible moves of other major players in the ETF market, specifically BlackRock. BlackRock, a heavyweight in the ETF landscape, has already made successful forays into cryptocurrency ETFs with both Bitcoin and Ethereum, with their Bitcoin ETF, iBIT, holding nearly $60 billion in assets and their Ethereum ETF boasting $3.7 billion. As such, rumors of a potential BlackRock XRP ETF have been circulating, causing a ripple of excitement within the crypto community.
Adding fuel to the fire, FOX journalist Eleanor Terrett hinted at the possibility of more ETF applications in the near future, though she refrained from specifically mentioning BlackRock. If BlackRock were to throw its hat in the ring, it could potentially bolster XRP’s standing in the market, attracting a larger pool of investors. Eight other asset managers, including Bitwise, CoinShares, 21Shares, and WisdomTree, have already submitted applications for an XRP ETF, indicating a growing institutional interest in XRP.
Meanwhile, the price of XRP has been subject to fluctuations amid these unfolding events. The cryptocurrency traded at approximately $3.08, experiencing a 31% decrease in trading volume, reflective of investor caution following the US Federal Reserve’s decision to maintain interest rates. Traders are also keeping a close eye on upcoming US inflation data, which could sway market trends.
Despite recently slowing down, XRP has shown strong performance in January, demonstrating a gain of over 43%. Analysts suggest that if XRP breaks above the $3.55 mark, it could be propelled towards the $4 threshold. Conversely, a dip below $2.6 might open the door for a bearish market. However, with the increase in ETF filings and the Ripple vs. SEC case nearing resolution, investor optimism for XRP’s future remains high.
