According to Fox Business: Crypto asset manager Grayscale is preparing to launch the first U.S. XRP Trust Fund, a move seen as a precursor to the introduction of an XRP exchange-traded fund (ETF), FOX Business has learned. Announced Thursday morning, the new "closed-end" fund will offer accredited investors direct exposure to XRP, the native token of the XRP Ledger, which is integral to Ripple's cross-border payment solutions.
Grayscale has a history of leading the charge in crypto-related financial products, having played a key role in bringing the first cryptocurrency ETFs to Wall Street. The firm successfully sued the SEC in 2023, allowing it to convert its Bitcoin Trust into a spot ETF. This victory paved the way for other major financial players, such as BlackRock and Fidelity, to launch their own Bitcoin ETFs, resulting in significant mainstream adoption.
The launch of the XRP Trust Fund follows the unveiling of Grayscale’s intended four-phase product life cycle for XRP, suggesting that a full-fledged XRP ETF could emerge in the future. The XRP Trust will join Grayscale’s growing lineup of digital asset products, which have expanded to include Ethereum-based ETFs after the SEC approved six Ether ETFs earlier this year.
The XRP Trust will differ from an ETF in that it will cater exclusively to accredited investors, while an ETF requires SEC approval to target retail investors. However, Grayscale’s Bitcoin and Ether trusts have already transitioned into ETFs, hinting at the potential for XRP to follow the same trajectory.
XRP, currently trading at $0.54, has seen significant market interest, especially following Ripple’s partial legal victory against the SEC in 2023. The SEC had accused Ripple of failing to register XRP sales as securities, resulting in ongoing legal disputes. Ripple was ordered to pay a $125 million fine for institutional XRP sales, while the SEC continues to deliberate over an appeal on the token's status in the secondary market.
Despite the uncertainty, Grayscale remains optimistic about XRP's long-term value. Rayhaneh Sharif-Askary, Grayscale’s head of product and research, emphasized the potential of the XRP Ledger to revolutionize cross-border payments and streamline traditional financial systems.
