Grayscale’s SEC Filing: Hope for Ripple’s XRP ETF in USA?

Grayscale Investments has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to transform its mixed-crypto fund into an exchange-traded fund (ETF).

This announcement coincides with Canary Capital’s intentions to establish a spot Litecoin ETF.

Grayscale’s Proposed ETF

Grayscale’s Digital Large Cap Fund (GDLC), currently traded over the counter, possesses $524 million in assets under management. Company documentation indicates that Bitcoin (BTC) constitutes 75% of the portfolio, with Ethereum (ETH) representing 19%. The remainder includes Solana (SOL), Avalanche (AVAX), and XRP.

Should approval be granted, Grayscale plans to list the ETF on the New York Stock Exchange (NYSE). The exchange has already submitted a 19b-4 form to the SEC to facilitate the conversion.

This initiative follows Grayscale’s earlier achievement in turning its Bitcoin (GBTC) and Ethereum (ETHE) funds, along with smaller versions of each, into ETFs earlier this year.

In September, the firm also introduced a dedicated XRP trust aimed at tracking the token’s price. Similar to its existing Bitcoin and Ethereum funds, this trust has the potential to be converted into a spot XRP ETF.

Despite Ripple’s ongoing legal issues with the SEC, CEO Brad Garlinghouse remains optimistic that XRP will eventually have its own ETF.

Grayscale faces competition in the emerging XRP ETF market. Recently, Bitwise and Canary Capital have submitted their applications to the SEC for spot XRP ETFs, which intend to track the token’s price using the Chicago Mercantile Exchange’s CF Ripple index.

Canary Capital’s Litecoin ETF Plans

Meanwhile, Canary Capital has disclosed its plans for a Litecoin ETF. Based on its proposal, the ETF would include Litecoin (LTC) and reference the CoinDesk Litecoin Price Index to determine its daily net asset value.

According to CoinGecko data, LTC boasts a market capitalization close to $5.3 billion, ranking it as the 26th largest cryptocurrency.

In a statement shared by Fox Business reporter Eleanor Terret, Canary Capital described Litecoin as a stable, well-established digital asset with considerable institutional appeal.

“With its solid foundation, Litecoin maintains a significant position within the broader cryptocurrency landscape, which Canary believes could attract a broader spectrum of institutional investors,” the statement noted.

Earlier this month, a spokesperson from the venture capital firm conveyed optimism about the SEC’s possible approval of these funds, highlighting “promising signs of a more adaptable regulatory environment” following past approvals.