On September 12, asset management giant Grayscale announced the launch of its new fund, the Grayscale XRP Trust, which will invest in Ripple’s XRP token. Structured as a closed-end fund, it will allow qualified investors to invest in XRP, one of the largest cryptocurrencies with a market capitalization of over $32 billion.
This marks Grayscale’s second attempt to offer XRP investment products. In 2021, the company launched an XRP fund but was forced to close it after the U.S. Securities and Exchange Commission (SEC) accused XRP of being a security. The recent move by Grayscale has revived interest, fueling speculation that the SEC may approve a Spot XRP ETF in the future, following its approval of Bitcoin and Ethereum ETFs in 2024.
Grayscale now boasts over 20 cryptocurrency-related investment products. Upon the announcement of the new fund, XRP saw a sharp increase in value, jumping nearly 10%, a significant move for a typically low-volatility token. At the time of writing, XRP is trading around $0.5694, up 6% over the past 24 hours.
Rayhaneh Sharif-Askary, Head of Product & Research at Grayscale, commented:
“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.“
Grayscale’s latest move follows the launch of an Avalanche (AVAX) fund in early September, which led to a more than 20% increase in the token’s value. This year, Grayscale has introduced investment funds for top-tier cryptocurrencies like Sui (SUI), Bittensor (TAO), and MakerDAO (MKR), each showing sharp price increases after their respective launches.
With Grayscale’s continued influence in the crypto space, many investors see the firm’s backing as a stamp of approval for the tokens it chooses to support.
Related news: XRP Price Surges 20% after Ripple Wins SEC Lawsuit
