Grayscale Launches XRP Trust: Is an XRP ETF on the Horizon?

Grayscale Investments has introduced the Grayscale XRP Trust, granting accredited investors direct exposure to XRP, the native token of the XRP Ledger. The Trust operates similarly to Grayscale’s other single-asset funds and is available for daily subscription to qualified investors, according to a Ripple press release.

Although XRP’s regulatory status remains uncertain due to the ongoing legal battle between Ripple and the SEC, Grayscale maintains optimism regarding the token’s long-term potential. XRP, designed for fast, cross-border transactions on its blockchain, plays a crucial role in the digital payments space. Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, emphasized the Trust’s goal of providing investors access to a digital asset with real-world payment utility.

This launch holds substantial significance for U.S. financial markets by expanding institutional access to XRP, a leading cryptocurrency in cross-border payments. The Grayscale XRP Trust is expected to draw increased institutional interest and capital inflows, further fueling speculation about the eventual approval of an XRP-based ETF.

Grayscale’s success with converting Bitcoin and Ethereum trusts into ETFs, following its legal victory against the SEC, suggests a possible roadmap for future XRP products. While an XRP ETF is not yet available, Grayscale’s four-phase product plan keeps this possibility on the table, contingent on future regulatory approvals.

XRP is currently priced at $0.57, significantly below its 2018 peak of $3.84. However, following the announcement of Grayscale’s XRP Trust, the token’s price surged by over 8% within the last 24 hours.

XRP ETF Next?
Market speculation about a potential XRP ETF has grown, especially following Standard Chartered analysts’ projection that Ripple ETFs could launch by 2025, after the expected approval of Ethereum ETFs. Ripple CEO Brad Garlinghouse has also suggested that token-based ETFs are inevitable, reinforcing optimism for future crypto ETF offerings.

A spot XRP ETF would closely track the price of XRP and directly invest in the token. Like other crypto ETFs, it would trade on public exchanges and be accessible through standard brokerage accounts, offering investors a familiar entry point into the cryptocurrency market.

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