On Thursday, the well-known cryptocurrency asset management company announced that it had launched a new trust that tracks the performance of its proprietary #Ripple (XRP) token.
Given the history of other trusts (BTC and ETH) converting to spot ETFs, one wonders if Ripple's new product can quickly create its own exchange-traded fund.
After #Grayscale released the news, its price soared from less than nearly 0.54 to a multi-week peak around 0.59 minutes. After a slight pullback, the price of #XRP reached 0.58, up more than 1% over the past 10 weeks. In addition, past examples of fake news show that #ETF announcements can have a significant impact on price momentum.
executives, including CEO Brad Garlinghouse, were adamant that XRP would inevitably have its own exchange-traded fund. Their comments came despite Ripple's legal battle in the US with the same agency approving or rejecting Etf. But the legal battle with the SEC is nearing an end after a US judge fined Ripple 12,500 million yen. This was seen as a big win for the industry. Since the agency had originally demanded billions of dollars.
The grayscale chart also shows some promising signs. In the past, the company had two of the largest private funds to track BTC and ETFs, but this year both were converted into spot ETFs.
As a result, the potential finality of the SEC's lawsuit against Ripple could be the easiest way to create an XRP spot ETF, especially if there are major changes in the U. S. political scene.
Commenting on the launch of Grayscale's Ripple Trust, Ryan Lee, principal analyst at Bitget Research, told CryptoPotato that the move will "definitely" increase market confidence in XRP. This is because grayscale products attract institutional investors primarily because they can invest in regulated products. Lee cites numerous benefits of XRP involving grayscale:
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