- SEC published NYSE Arca’s proposal for Grayscale XRP Trust listing, initiating a potential 240-day review period.
- The $16.1 million trust would utilize Coinbase Custody and BNY Mellon as key service providers.
- Trust will source XRP prices from regulated U.S.-Compliant Trading Platforms covering 97% of USD-XRP volume.
- Proposal includes measures against market manipulation through the CoinDesk XRP price Index.
- Creation and redemption process will be cash-based to maintain regulatory compliance and operational security.
The Securities and Exchange Commission has commenced its review of NYSE Arca’s proposal to list shares of the Grayscale XRP Trust, marking a significant step toward potential mainstream adoption of XRP-based investment products in traditional markets.
The proposal outlines a comprehensive framework for the $16.1 million trust’s conversion to an exchange-traded product. Coinbase Custody Trust Company would serve as custodian, while BNY Mellon would handle administrative responsibilities, establishing a robust institutional infrastructure.
Market integrity measures feature prominently in the filing, with the trust tracking XRP prices through the CoinDesk XRP Price Index (XRX), calculated daily at 4:00 p.m. New York time. This approach aims to prevent market manipulation by aggregating data from regulated exchanges.
“If approved, it would represent a significant validation of XRP as an investable asset, potentially broadening institutional participation and enhancing market liquidity,” according to Min Jung, analyst at Presto Research.
The proposal addresses regulatory concerns through a cash-based creation and redemption mechanism, where authorized participants avoid direct XRP handling. This structure aims to satisfy institutional compliance requirements while maintaining operational security.
The trust’s framework includes specific protocols for managing blockchain forks and maintaining accurate price discovery across multiple venues. As of September 2024, the filing indicates that compliant trading platforms handle over 97% of U.S. dollar-XRP trading volume.
The SEC’s review process could extend up to 240 days following an initial 45-day period, which begins upon publication in the Federal Register. This timeline reflects the regulatory scrutiny applied to crypto-based investment products, particularly given XRP’s unique regulatory history.
The regulator has opened the proposal for public comment, as institutional interest in cryptocurrency investment vehicles continues to grow. This development follows several other firms filing for XRP ETF products, indicating expanding institutional appetite for regulated crypto exposure.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Coinbase Shatters Expectations with $1.29B Profit in Q4 2023
- New Open-Source AI Model Matches China’s DeepSeek with 85% Less Training Data
- Coinbase Smashes Q4 Expectations With 138% Revenue Surge Amid Trump-Driven Crypto Rally
- Top SDNY Prosecutor Resigns After DOJ Halts NYC Mayor Adams Corruption Case
- Central Banks from France, Italy, Malaysia, and Singapore Join BIS Project to Revolutionize Retail FX Payments
