Ripple’s XRP is on a massive uptrend, gaining 7.7% in the seven days. The gains come after the world’s largest digital asset manager, Grayscale, announced plans to launch the first XRP Trust in the US.
According to Grayscale, the launch of the XRP Trust is the first step towards the digital asset manager launching an exchange-traded fund (ETF) for XRP.
“We believe Grayscale XRP Trust provides investors with exposure to a blockchain solution that is potentially positioned to play a crucial role in optimizing legacy financial systems by streamlining cross-border payments,” said the head of product and research at Grayscale, Rayhaneh Sharif-Askary.
Is an XRP ETF Next?
The product will operate as a “closed-end” fund that will expose investors to XRP. The firm noted that the trust will be rolled out gradually in four phases, and an ETF is planned for later.
Grayscale is the main force behind the approval of spot crypto ETFs in the US. Last year, the asset manager sued the US Securities and Exchange Commission (SEC) to convert its Grayscale Bitcoin Trust to a spot ETF tracking BTC’s spot price.
After Grayscale won the court case, Wall Street giants BlackRock and Fidelity launched their crypto ETFs. Grayscale’s Bitcoin and Ethereum ETFs are also among the largest in the US.
The launch of this product also comes amid uncertainty over whether the SEC might appeal a judge’s ruling that XRP secondary sales are not securities. As ZyCrypto reported, the Ripple legal team sought court approval to delay payment for the $125M settlement.
The Grayscale XRP Trust will join the growing list of crypto funds managed by Grayscale. The crypto asset manager also offers trusts for other altcoins, including Avalanche and Solana.
XRP Jumps
XRP price jumped by more than 8% after the development to trade at $0.58. Trading volumes also shot up by as high as 80% per CoinMarketCap.
The news saw XRP reach the highest level since late August, outperforming the rest of the top ten largest cryptos by market capitalization.
According to an analyst on X, XRP has formed a bullish ascending triangle, with a breakout possibly taking the prices to levels above $0.70. This could pave the way for a rally to $1, especially if the trust attracts institutional investors.
(Source: X)
