When one of the top investment firms in the world, Grayscale, decides to launch a trust fund for a particular crypto, it’s big news. Grayscale doesn’t make moves like this lightly. So their decision to create an XRP Trust is surely something that could have enormous implications for the price of XRP going forward.
And there are 3 good reasons to think this move could really accelerate XRP’s price rise.
1. Increased Institutional Interest in XRP
For the first time, big time institutions have an easy way to put serious money into XRP without taking direct ownership. Through Grayscale, they can invest without the technical hassle. More big money means higher demand which often pumps the price up.
We are proud to announce the creation of a new single-asset crypto investment fund, Grayscale $XRP Trust, which will be available through private placement.Available to eligible accredited investors.Read the press release: https://t.co/rOmVPUSFxZ pic.twitter.com/WEhk849RmT
— Grayscale (@Grayscale) September 12, 2024
2. Paving the Way for an XRP ETF
Grayscale is reportedly laying the groundwork to develop their trust further, which could eventually lead to an XRP ETF down the line if regulators approve it. An ETF would open up XRP to millions more everyday investors, skyrocketing trading volumes and liquidity in the market.
Many analyst were debating that following BTC and ETH, the next crypto ETF would be Solana. However, after this news, XRP has a higher chance.
3. Validation of XRP as a Legit Cryptocurrency
A big name like Grayscale offering an XRP investment vehicle lends it credibility as a crypto worth investing in long term. This stamp of approval could ease concerns around Ripple’s legal closure with SEC and inject more confidence across the whole market.
That type of positive sentiment fuels even further buying pressure and price gains. The XRP price pumped 8% following this news and is now trading above $0.56.
In summary, keep your eye on XRP – this new trust could end up being the catalyst that sends it parabolic over the next few years. Exciting times ahead!
Read also: Is XRP Price Ready For a 500% Rally? Trader’s Chart Analysis Sparks Debate
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