New York Stock Exchange (NYSE) Arca has submitted a 19b-4 filing seeking to convert Grayscale’s XRP Trust into a spot ETF, with the trust fund’s AUM at approximately $16.1 million.
The issuer filed with the SEC a 19b-4 application to amend existing rules to allow for the trading of this ETF, which is a crucial part of the ETF approval process. Once approved by the SEC, the filing will be published in the Federal Register, initiating the approval process.
The XRP Trust is already formed in a way to reflect the token’s market value through shares that fluctuate with XRP’s price movements. The Trust aims to provide investors with exposure to XRP by reflecting its value per share, minus expenses and liabilities. As per the filing, while it’s not a direct investment in XRP, it offers a cost-effective and convenient alternative to acquiring and securing XRP independently. The Trust calculates its Net Asset Value (NAV) daily at 4:00 p.m. ET by determining the XRP Index Price, multiplying it by the Trust’s total XRP holdings, adding XRP value from pending creation orders, subtracting accrued expenses, subtracting XRP value from pending redemption orders and lastly deducting the sponsor’s fee.
With the filing already in place, the SEC now has a tight timeline to act. Once this filing gets published in the Federal Register, the clock starts ticking for public comments and the SEC’s ultimate decision .
The news comes in after the SEC officially approved the Bitwise Bitcoin and Ethereum ETF for listing and trading on NYSE Arca. This approval enables inventors with regulated access to spot BTC and ETH in a single financial product, weighted by market capitalization.
Also Read: XRP Price Teases Bullish Breakout as Grayscale Files for ETF