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- Grayscale has launched the first U.S. XRP Trust, aiming to provide institutional exposure to XRP’s unique cross-border payment capabilities.
- The trust could be converted into an ETF, pending SEC approval, signaling potential mainstream adoption of XRP.
Grayscale Investments has officially launched its first U.S.-based XRP Trust, causing waves in the cryptocurrency market. At the time of writing, XRP is trading around $0.5713, up 7.45% over the last 24 hours.
This price increase has been attributed to Grayscale’s launch of the XRP Trust, which has prompted increased interest in the digital asset. Additionally, XRP’s 24-hour trading volume has increased by more than 70%, hitting $1.424 billion, indicating that the market has reacted positively to this news.
This development was also highlighted by blockchain researcher Collin Brown, who stated that this marks a major step towards a potential ETF.
🚨 BREAKING #Ripple News! 🚨
Grayscale is set to launch the first US #XRP Trust, marking a major step towards a potential ETF! 🚀 This follows their successful conversions of #Bitcoin and #Ether trusts into ETFs earlier this year.
Retweet folks! 🚀🚀🚀 pic.twitter.com/VkSQ0UftrE
— Collin Brown (@CollinBrownXRP) September 12, 2024
Grayscale’s XRP Trust Offers Direct Access to XRP with Future ETF Potential
The trust gives accredited investors direct access to XRP, which is what Ripple’s blockchain, the XRP Ledger, uses to make cross-border transactions quick and affordable.
This new investment vehicle is intended to provide a more accessible way for institutional investors seeking to capitalize on XRP’s unique use case in global financial systems.
What makes this trust even more intriguing is that Grayscale has hinted that it may be converted into an exchange-traded fund (ETF) in the future, subject to regulatory approval.
The cryptocurrency sector has been eagerly awaiting the introduction of new ETFs since Grayscale successfully converted its Bitcoin and Ethereum trusts into ETFs earlier this year. While an ETF would allow simpler access to XRP for individual investors, the closed-end trust is now only available to accredited investors.
Despite this constraint, the establishment of the XRP Trust has sparked hope among the XRP community, sometimes known as the “XRP Army.” Many consider this a significant step toward more institutional use of XRP, as well as evidence that the asset has matured past its legal and regulatory struggles.
Grayscale’s plan to launch this trust coincides with Ripple’s continuing legal struggle with the United States Securities and Exchange Commission (SEC). The SEC sued Ripple in 2020, alleging that it conducted an unregistered securities offering through the sale of XRP.
Although Ripple won a partial success in 2023 when a judge determined that XRP sales on secondary markets are not securities transactions, the matter for institutional sales is still unresolved. The SEC has until early October 2024 to file an appeal; thus, XRP’s regulatory position remains undetermined.
Previously, as CNF reported, Ripple’s landslide victory over the SEC has officially declared XRP a non-securities. Judge Torres reduced the SEC’s demand for a fine from $2 billion to $125 million.
