$XRP ends the year on a positive note, which has a significant impact on Grayscale's XRP Trust, which the investment firm relaunched in September. The Trust is reportedly set to close out 2024 up more than 300%, thanks to XRP's late rally amid changing dynamics in the crypto ecosystem.
It is worth noting that recent developments around cryptocurrency regulation and political conditions have benefited XRP, especially towards the end of the year. Donald Trump’s commitment to supporting the crypto industry and his victory in the US presidential election have added to XRP’s bullish momentum, building on his partial victory in the 2023 court ruling.
XRP bullishness has spilled over into products tied to the crypto asset, including Grayscale’s XRP Trust. Shares of the Trust, which traded at $10.85 during its September relaunch, hit $45.46 in December. Some analysts have said Trump’s election victory and his support for the crypto community have helped drive XRP adoption among investors, leading to its recent rally.
Meanwhile, many XRP supporters believe that the crypto asset’s regulatory uncertainty is being clarified. This phenomenon could spark positive sentiment among investors, fueling speculation that XRP could soon secure a spot ETF. Achieving a spot ETF would pave the way for institutional funds and increase XRP adoption.
However, some ETF analysts see the Grayscale XRP Trust as a catalyst for accelerating the approval of an ETF for the crypto asset. Several asset managers, including Canary Capital and Bitwise, have already submitted applications for spot XRP ETFs. If approved, this would allow institutional participation in XRP, potentially increasing demand for the cryptocurrency.
Notably, a similar situation occurred with Bitcoin in January of this year, with demand for it skyrocketing after the SEC approved several Bitcoin spot ETFs. Additionally, with the rise of institutional investors, demand for Bitcoin increased, leading to a price rally of over 180% in less than 12 months. $XLM $LINK
