Grayscale relaunches its XRP Trust, paving the way for a U.S. XRP spot ETF approval.
Ripple’s court victory clears the regulatory path for renewed XRP investments.
Grayscale’s XRP Trust sparks market optimism, boosting XRP’s institutional appeal.
Grayscale, a prominent digital currency asset manager, has reintroduced an XRP Trust aimed at providing accredited investors with exposure to cryptocurrency. This development may indicate a step forward in the direction of a potential XRP exchange-traded fund (ETF) being accessible to U.S. traders.
Initial Trust Removal
The platform originally removed the XRP Trust in 2021 following a Securities and Exchange Commission (SEC) lawsuit against Ripple Labs. The regulatory body alleged the cryptocurrency was an unregistered security, prompting many exchanges to delist XRP.
Ripple’s Legal Victory
Nevertheless, Ripple has recently won a key legal battle against the SEC, which will reduce most of the legal risks associated with the token. Grayscale could reinstate the investment vehicle to qualified purchasers when the pressure was lifted.
According to Rayhaneh Sharif-Askary, Grayscale’s Head of Product and Research stated in a press release on Thursday, “We believe Grayscale XRP Trust gives investors exposure to a protocol with an important real-world use case.” She highlighted XRP’s ability to enable lightning-quick international money transfers to settle in seconds. Like Grayscale’s other single-asset funds, the trust will maintain a 100% allocation to XRP. This grants ownership of the cryptocurrency’s performance without holding the actual coins.
XRP Price Surge
Following the announcement, XRP saw its value climb, rising by 6.81% to reach $0.5627 as of press time. The token gained over 24-hour volume by $1,513,178,233, putting its overall market cap at around $32 billion.
Boost to Institutional Support
The trust’s relaunch indicates Grayscale’s renewed belief in XRP as an investment. Many experts argue this move advances the potential acceptance of a U.S. exchange-traded product for XRP, widening its institutional backing.
Grayscale is continuing to expand its range of investment products related to cryptocurrencies. The XRP Trust relaunch opens the asset to qualified investors and allows them to invest in one of the most recognizable digital currencies. With legal issues reduced, the adoption and the price of XRP may continue to rise.
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