Grayscale Unveils First XRP Trust In The US, ETF Ahead?

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As a seasoned analyst with over two decades of experience in the financial sector, I’ve seen my fair share of market moves that have left even the most hardened investors scratching their heads. However, the recent announcement by Grayscale of its XRP trust has caught my attention, not just for its potential implications on XRP’s future, but also due to the current legal battles Ripple is facing with the US SEC.

As a researcher, I am excited to share that I recently witnessed a significant development in the world of cryptocurrencies. Grayscale, a prominent figure in the crypto asset management sector, has introduced the first US-based XRP trust. This groundbreaking move has sent ripples across the market, causing the token’s price to surge by approximately 8%, reaching $0.57 at the time of reporting.

XRP Trust Announced, Is The XRP ETF Incoming?

Today, Grayscale Inc., known as a digital assets manager, revealed the debut of a closed-end XRP trust within the U.S. This move opens up opportunities for institutional investors to invest in the top 10 cryptocurrencies, according to an official statement from Ripple.

Rayhaneh Sharif-Askary, who leads Product & Research at Grayscale, commented on the progress: “She spoke about it.

We believe Grayscale XRP Trust gives investors exposure to a protocol with an important real-world use case. By facilitating cross-border payments that take just seconds to complete, XRP has the potential to transform the legacy financial infrastructure.

For those unfamiliar, a closed-end trust contrasts with an exchange-traded fund (ETF) as it grants some investors access to the underlying asset with fewer regulatory restrictions. In contrast, ETFs must undergo extensive scrutiny from regulators like the US Securities and Exchange Commission (SEC) before they become accessible to investors.

To put it simply, if a trust is given the necessary regulatory approval, it has the possibility of being converted into an Exchange Traded Fund (ETF). For instance, Grayscale’s individual Bitcoin (BTC) and Ethereum (ETH) investment trusts were recently granted permission to transform into ETFs.

It’s quite possible that we may witness a XRP Exchange Traded Fund (ETF) in the United States in the near future, given the recent announcement by Grayscale about a four-step product lifecycle for their new XRP trust. This development lends credibility to the idea of an impending XRP ETF.

It’s worth noting that the launch of the XRP trust occurs amidst Ripple, its creator, being embroiled in numerous legal disputes with the U.S. Securities and Exchange Commission (SEC). As a result, the value of XRP has surged by 8% following the announcement, reaching $0.57 at present.

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2024-09-12 18:04