Grayscale launches XRP trust: is an XRP ETF next?
Grayscale Investments has launched the Grayscale XRP Trust, offering accredited investors exposure to XRP, the token used on the XRP Ledger.
The Trust is available for daily subscription to qualified investors and operates similarly to Grayscale’s other single-asset investment trusts, according to a Ripple press release. While XRP’s regulatory status remains uncertain due to the ongoing legal battle between the SEC and Ripple (XRP), Grayscale remains optimistic about its long-term value.
The XRP ledger is a blockchain designed to facilitate fast, cross-border transactions. According to Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, the Trust aims to provide investors access to a digital asset with real-world payment utility.
This development is significant for the U.S. financial markets because it enables accredited investors to access XRP, a major player in the cross-border payments industry. By introducing an investment vehicle for XRP, Grayscale is opening the door to broader institutional interest, increased capital inflows, and potentially advancing the case for a future XRP-based ETF.
This launch could pave the way for other crypto investment products into XRP, such as a spot XRP ETF, further integrating digital assets into traditional financial markets.
Grayscale’s XRP Trust follows the company’s success in converting its Bitcoin (BTC) and Ethereum (ETH) trusts into ETFs after winning a lawsuit against the SEC. Although an XRP ETF isn’t currently available, Grayscale’s four-phase product plan leaves the possibility open for future regulatory approval.
XRP is currently trading at $0.57, significantly lower than its 2018 all-time high of $3.84. However, since this news was released, the price of XRP has increased by over 8% in the last 24 hours.
XRP ETF next?
In May, Standard Chartered analysts projected that Ripple ETFs could launch in 2025, following the approval of Ethereum ETFs.
Ripple CEO Brad Garlinghouse previously suggested that multiple token-based ETFs were inevitable, reinforcing speculation about future crypto ETFs.
A spot crypto ETF tracks the price of a specific cryptocurrency and invests portfolio funds into that crypto. These funds are traded on public exchanges and generally track a particular crypto. Like similar funds, crypto ETFs are listed on regular stock exchanges, and investors can hold them in their standard brokerage accounts.
