Grayscale Launches XRP Trust Fund Targeting Accredited Investors

The world’s largest digital asset manager Grayscale is now planning to launch a Grayscale XRP Trust. This development comes just when the Ripple vs SEC lawsuit

Accredited investors will now be able to gain direct exposure to XRP, thanks to the launch of the Grayscale XRP Trust Fund. This development comes as the regulatory oversights on XRP are reducing.

Moreover, the trust funds are also subjected to lighter regulatory oversight when compared to exchange-traded funds (ETFs). This detail is crucial as Grayscale can later convert the XRP Trust to an XRP ETF, following its earlier demonstration with its GBTC and ETHE products.

The four-phase product life cycle of the Grayscale XRP Trust also keeps the possibility of an ETF on the table for the future. The XRP Army has been eagerly awaiting the launch of this product from prominent asset managers like Grayscale and BlackRock.

This development also comes after the launch of the spot Bitcoin ETF and spot Ether ETF this year, which has increased the demand for an XRP ETF. However, a potential spot XRP ETF faces uncertainty due to the ongoing legal battle between Ripple and the SEC.

The SEC sued Ripple in 2020, alleging that XRP sales should have been registered as securities. This also impacted the XRP price, which failed to participate in the 2023 bull run. Recently, the judge announced a $125 million settlement in the Ripple vs SEC lawsuit, with the securities regulator currently contemplating whether to appeal the judge’s verdict.

Despite this, Grayscale is confident in XRP's potential long-term value for investors. Rayhaneh Sharif-Askary, Grayscale’s head of product and research, told Fox Business:

“We believe Grayscale XRP Trust provides investors with exposure to a blockchain solution that is potentially positioned to play a crucial role in optimizing legacy financial systems by streamlining cross-border payments.”

Following this news, the XRP price shot up over 8%, reaching $0.5707 with its market cap surging past $32 billion. The daily trading volumes for XRP also saw a 71% increase, reaching $1.44 billion.

Earlier this year, the XRP price faced rejection at $0.65. If the bulls manage to break through this barrier, we could see the XRP price rally all the way to $1 by the end of this year. The institutional reaction to the launch of the Grayscale XRP Trust is something to keep an eye on.

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