Could an XRP ETF be on the way? A recent move has given rise to speculation about a possible launch of a spot XRP exchange-traded fund (ETF).
Grayscale Investments, the world’s largest digital asset management company, recently announced the reintroduction of the cryptocurrency XRP to its Digital Large Cap Fund. Following the news, speculation began to emerge that the company’s move suggests potential plans for an XRP ETF.
In its official announcement, the company highlighted that updated fund component weightings were performed for each product in connection with their respective Q4 2023 reviews. The company reported on the addition of the Avalanche (AVAX) and XRP cryptocurrencies, as well as, the removal of Polygon (MATIC).
“In accordance with the CoinDesk Large Cap Select Index methodology, Grayscale adjusted the GDLC portfolio by selling certain amounts of the existing fund components in proportion to their respective weightings and using the cash proceeds to purchase Avalanche (AVAX) and XRP. As a result of the rebalancing, Polygon (MATIC) was removed from the GDLC,” he wrote in a note.
As reported in its statement, at the end of January 4, 2024, the GDLC Fund Components were a basket of the following assets and weightings: Bitcoin (BTC) 69.15%; Ethereum (ETH) 21.90%; Solana (SOL) 3.65%; XRP 2.54%; Cardano (ADA) 1.62%; Avalanche (AVAX) 1.14%.
Bitcoin ETFs from Grayscale, VanEck and ARK have been given the green light to have their funds listed on exchanges
The three giants, Grayscale, VanEck and ARK, are in the spotlight with the prospect of offering spot Bitcoin ETFs in the US market. Recently, each of these companies took a significant step forward by receiving approval to trade their funds on reputable exchanges.
The Grayscale Bitcoin Trust, known as an investment vehicle aimed at accredited investors and traded on the OTCQX with the ticker GBTC, is now targeting a space on the NYSE Arca. This change will occur if Grayscale achieves the desired conversion of the trust to a spot Bitcoin ETF. In parallel, the VanEck Bitcoin Trust aspires to be traded under the Chicago Board Options Exchange, known as Cboe. ARK, not to be left behind and in collaboration with fund manager 21Shares, also has its Bitcoin ETF ARK 21Shares with an eye on Cboe.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.