XRP Spikes 8% as Grayscale Launches XRP Trust in the U.S.
Crypto fund manager Grayscale is launching an XRP trust that could pave the way for a spot XRP exchange-traded fund (ETF) in the U.S.
The closed-end fund will offer accredited investors direct exposure to XRP (XRP). Grayscale previously offered an XRP Trust but dissolved it in 2021 following the U.S. Securities and Exchange Commission’s 2020 lawsuit against Ripple Labs that alleged the XRP token is a security under federal securities law.
Ripple has since emerged victorious in a widely-followed court case against the SEC, clearing the regulatory headwinds for the closely related XRP token.
“We believe Grayscale XRP Trust gives investors exposure to a protocol with an important real-world use case,” said Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary in a press release. “By facilitating cross-border payments that take just seconds to complete, XRP can potentially transform the legacy financial infrastructure.”
The Trust functions like Grayscale’s other single-asset investment trusts, and is solely invested in the token underpinning the XRP Ledger.
XRP spiked 8% on the news.
Edited by Stephen Alpher.
Disclosure
Please note that our
privacy policy,
terms of use,
cookies,
and
do not sell my personal information
has been updated
.
CoinDesk is an
award-winning
media outlet that covers the cryptocurrency industry. Its journalists abide by a
strict set of editorial policies.
In November 2023
, CoinDesk was acquired
by the Bullish group, owner of
Bullish,
a regulated, digital assets exchange. The Bullish group is majority-owned by
Block.one; both companies have
interests
in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.
CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
:format(jpg)/s3.amazonaws.com/arc-authors/coindesk/6c6bb5af-692c-4fcf-9f8b-a75d0549effd.png)
Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
Follow @shauryamalwa on Twitter
