XRP, the native cryptocurrency of the XRP Ledger, jumped as much as 9% on Thursday following Grayscale’s announcement of a new XRP Trust.
This trust offers accredited investors direct exposure to the popular digital asset, raising speculation that it could lead to an eventual exchange-traded fund (ETF) similar to those already established for Bitcoin and Ethereum.
The price of XRP climbed to $0.56, marking a 4.81% gain, with an earlier spike of 9%. The token, which Ripple uses for its cross-border payments platform, is the fifth-largest cryptocurrency by market capitalization, excluding stablecoins Tether (USDT) and USDC.
Key Points:
- Grayscale Launches XRP Trust: Grayscale’s new XRP Trust will trade over the counter, offering institutional exposure to the token.
- XRP Market Surge: Following the announcement, XRP’s price rose by 9%, closing up 4.81% at $0.56 per coin.
- Potential ETF Catalyst: The trust could lay the groundwork for an eventual XRP ETF, similar to Grayscale’s Bitcoin and Ethereum trusts.
Why Grayscale’s XRP Trust Matters
Grayscale’s XRP Trust is seen as a significant development in the crypto world, where investors are seeking diversified exposure beyond Bitcoin and Ethereum.
Unlike an ETF, this trust will trade primarily over the counter and could trade at a price that diverges from the underlying value of the cryptocurrency portfolio. However, investors are eyeing this launch as a step toward a potential XRP ETF.
Rayhaneh Sharif-Askary, Grayscale’s head of product and research, noted the utility of XRP in cross-border payments, stating, “XRP can reduce frictions in international payments, enabling more efficiency in an evolving global economy.”
Ripple’s Legal Victory and Broader Implications
This launch follows Ripple’s partial legal victory in its prolonged battle with the U.S. Securities and Exchange Commission (SEC).
In a key ruling, U.S. District Judge Analisa Torres determined that XRP is not considered a security when sold to retail investors on exchanges, but it is considered an unregistered security when sold to institutional investors.
This ruling was celebrated as a win for the broader crypto industry, offering regulatory clarity.
Grayscale also recently made headlines when a U.S. court ruled that the SEC had been wrong to deny the company’s attempt to convert its Bitcoin trust into an ETF. This decision fueled optimism that Grayscale might eventually push for XRP to follow a similar path.
The launch of the XRP Trust has now set the stage for more institutional adoption, which could, in time, lead to the approval of an XRP ETF.
Market Outlook
XRP’s price surge indicates that investors are optimistic about the future of the token, particularly in light of Grayscale’s growing influence in the crypto space.
As the fifth-largest cryptocurrency, XRP is likely to remain in the spotlight as more institutional products become available, and regulatory clarity continues to evolve.
This development is part of a larger trend where the crypto industry is seeing increased interest in creating more structured and regulated financial products, offering more avenues for investors to enter the market.
Key Takeaways:
• XRP jumped by 9% following Grayscale’s XRP Trust announcement, closing up 4.81% at $0.56.
• The Grayscale XRP Trust will provide accredited investors direct exposure to XRP, trading over the counter.
• Grayscale’s move is seen as paving the way for a potential XRP ETF, following its success with Bitcoin and Ethereum ETFs.
This latest move underscores the growing demand for institutional-grade crypto investment products and highlights XRP’s evolving role in the global economy, particularly in international payments.
Investors are keeping a close watch on whether this will ultimately lead to an XRP ETF, further legitimizing the token in the broader financial markets.
