✨Grayscale Launches ✖️XRP Trust, Paving the Way for ETFs in the US
🟢Prior to the XRP Trust, Grayscale introduced single funds for MakerDAO (Sky), Bittensor, SUI, and several other tokens in the past two months. This is considered an important expansion for Grayscale, as the company previously focused mainly on Bitcoin and Ethereum funds, which were recently upgraded to ETF products.
🟢Grayscale previously launched a similar XRP fund but closed it in 2021, after the US Securities and Exchange Commission (SEC) sued Ripple Labs, accusing the company of offering XRP as a security and making a profit of $1.3 billion. It wasn’t until August this year that the court decided to fine Ripple $125 million, which temporarily cleared the legal hurdle that had been in place since 2020.
🟢Grayscale believes that XRP has the potential to improve financial infrastructure, especially in cross-border payments due to its fast processing speed. The launch of the new fund could also pave the way for an XRP ETF in the future.
🟢However, Nate Geraci, President of ETF Store, warned that the approval of an XRP ETF could be bumpy and would require political backing. In addition, the legal dispute between Ripple and the SEC also adds to the challenge of this process.