Grayscale Launching First US XRP Trust Fund
In a massive development for the crypto, Grayscale is set to launch the first US XRP trust. Indeed, the crypto asset manager announced the trust’s development on Thursday. Moreover, it will serve as a “closed-end” fund to grant certain investors XRP exposure, a Fox Business report states.
The development has reignited talk of an XRP ETF. The asset management firm had two previous crypto investment trusts for Bitcoin and Ethereum. Earlier this year, both of those eventually became ETFs, with the products receiving approval earlier this year.
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Grayscale to Launch XRP Trust: Is an ETF Next?
At the start of the year, few cryptocurrencies had the kind of potential XRP had. With Ripple’s years-long US Securities and Exchange Commission (SEC) lawsuit coming to an end, traders saw massive gains as a possibility for the asset. Although that has yet to come to pace, it appears as though the market is not abandoning that hope.
Now, Grayscale has announced its intention to launch the first US XRP Trust. The Ripple token powers the XRP Ledger and is a key aspect of the firm’s cross-border payment system. For Grayscale, that potential is enough to take this significant step. Subsequently, the market is renewing hope for an XRP ETF.
Also Read: Ethereum ETFs Get Positive August Start Despite Grayscale’s $2B in Outflows
It was Grayscale that served as the catalyst for the Bitcoin ETF approval that took place in January. the asset manager sued the SEC to convert its Grayscale BTC Trust into the aforementioned ETF. That paved the way for finance giants like BlackRock and Fidelity to issue similar products.
Grayscale followed the same model with the arrival of Ethereum ETFs just months later. Now, there is the chance they could be following the same playbook for an XRP offering. The report notes the firm has a four-phase product life cycle for the XRP trust. Therefore, an ETF conversion is certainly not out of the question in the near future.
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