XRP ETF Hopefuls Rejoice As Grayscale Launches XRP Trust.
YEREVAN (CoinChapter.com) — Grayscale has launched the U.S.’s first XRP Trust. The product would offer accredited investors direct exposure to XRP, the digital token behind the XRP Ledger. The trust opens a new avenue for market participants to invest in XRP.
With this trust, Grayscale continues expanding its cryptocurrency market presence. Grayscale’s product adds to its growing list of crypto investment options. Furthermore, the launch added fresh fuel to speculations of an XRP ETF, which could help boost the token’s prices.
Is an XRP ETF on the Horizon?
The company has previously converted its Bitcoin and Ethereum Trusts into ETFs. As such, Ripple fans would likely argue that the asset manager might be planning to launch an XRP ETF. Furthermore, the launch of the Bitcoin spot ETF and ETH ETFs acted as bullish cues for the tokens.
XRP bulls would hope for a similar reaction from the token if and when Grayscale decides to launch an ETF for XRP.
Grayscale XRP Trust Launch – Source: @DeItaone
Grayscale’s four-phase product life cycle opens the potential for the trust to become an ETF, depending on regulatory approval from the U.S. Securities and Exchange Commission (SEC).
The XRP Trust is structured as a “closed-end” fund, only available to accredited investors. Transitioning to an ETF would require additional approval from the SEC. While there is no guarantee, Grayscale’s previous ETF conversions keep hope alive for XRP traders.
ETF Uncertainty Remains
The launch of Grayscale’s XRP Trust has sparked significant interest among XRP holders and the broader crypto community. Grayscale’s latest announcement highlights the growing adoption of the crypto sector by traditional finance giants.
However, the possibility of an XRP ETF in the immediate future seems unlikely. The Ripple vs. SEC legal battle likely left a mark on Gary Gensler, and the regulatory body being a sore loser is not a far-fetched likelihood. Hence, XRP’s legal issues with the regulatory body complicate the process.
XRP Price Surges Post Grayscale Trust Launch
XRP’s price surged by 6.2%, reaching $0.5666. The spike followed a near-horizontal price action over the last 24 hours when the price fluctuated between $0.5235 and $0.5691. The market cap now sits around $32 billion.
Additionally, XRP’s trading volume over the past day hit $1,690,700,587, reflecting a significant rise in trading activity. The fully diluted valuation is $56 billion.
XRP Price Surge at $0.5666. Source: CoinGecko
The increase in price and market activity follows the announcement of Grayscale’s new U.S. XRP Trust, which could spark more interest from investors looking to gain exposure to XRP.
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