Grayscale Launches XRP Trust: Potential Path to Spot XRP ETF

Grayscale Launches XRP Trust: A Step Towards a Spot XRP ETF

Grayscale, a prominent player in the crypto asset management space, has announced the launch of an XRP Trust that may pave the way for a spot XRP exchange-traded fund (ETF) in the United States. This closed-end fund aims to provide accredited investors with direct exposure to XRP (XRP), the digital asset associated with Ripple Labs.

Previously, Grayscale offered an XRP Trust but had to dissolve it in 2021 due to the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs. The SEC’s case alleged that the XRP token is classified as a security under federal securities laws. However, in a significant turn of events, Ripple has since achieved a notable victory in a widely-followed court case against the SEC, effectively clearing regulatory obstacles for XRP.

Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, commented on the launch, stating, “We believe the Grayscale XRP Trust provides investors with valuable exposure to a protocol that has an important real-world use case.” She further elaborated, “By facilitating cross-border payments that can be completed in mere seconds, XRP has the potential to revolutionize the legacy financial infrastructure.”

The Grayscale XRP Trust operates in a manner similar to Grayscale’s other single-asset investment trusts, being exclusively invested in the token that underpins the XRP Ledger. Following the announcement of the trust, XRP experienced a significant price surge, spiking by 8% in response to the news.