New XRP Trust by Grayscale Released After Bitcoin and Ethereum ETF Introductions

Grayscale, a digital asset manager, has launched a new trust that provides investors with exposure to XRP, the seventh largest cryptocurrency by market capitalization and the digital asset created by the founders of Ripple, a payment platform. The launch of this trust was announced by Grayscale on Thursday, with the company expressing its belief in XRP’s potential to revolutionize the traditional financial infrastructure.

Unlike Grayscale’s Bitcoin and Ethereum exchange-traded funds (ETFs) approved by the Securities and Exchange Commission (SEC) earlier this year, the XRP trust operates differently. While investors can purchase shares that mirror XRP’s price, the trust’s structure does not allow for swift redemption of shares like ETFs do.

Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askary, stated that the Grayscale XRP Trust offers investors exposure to a protocol with significant real-world utility. Currently, XRP boasts a market capitalization of $31.6 billion, with its price standing at $0.56, reflecting a nearly 6% increase over the last 24 hours. Following the trust’s announcement, the price briefly surged above $0.57 before experiencing a slight decline.

Ripple, the fintech company behind XRP, aims to enhance cross-border payments. Grayscale’s involvement in the approval of spot Bitcoin ETFs is notable, as the company sued the SEC in 2022 for rejecting its application to convert its Bitcoin Trust into an ETF. In August 2023, the U.S. Court of Appeals for the DC Circuit ruled in favor of Grayscale, citing the SEC’s lack of justification for the denial. Subsequently, the SEC approved the conversion, along with nine other Bitcoin ETF filings, in January.

Grayscale offers various products that enable investors to access digital currencies and tokens through trusts, including Bitcoin Cash, Filecoin, Chainlink, Litecoin, and Avalanche. The company’s expansion into XRP demonstrates its commitment to providing diverse investment opportunities in the cryptocurrency space.

Edited by Andrew Hayward.