In a major development for cryptocurrency enthusiasts and investors, Grayscale Investments has announced its plans to launch a new “closed-end” fund dedicated to XRP, the native token of the XRP Ledger. This move comes after a notable hiatus—Grayscale previously managed an XRP fund but shut it down in 2021 following legal challenges from the U.S. Securities and Exchange Commission (SEC), which contended that XRP qualifies as a security under U.S. law.
XRP, the seventh-largest cryptocurrency by market capitalization, has recently experienced a surge of approximately 8% following Grayscale’s announcement. With a market cap surpassing $32 billion, XRP remains a significant player in the digital asset arena. Grayscale’s new initiative aims to provide investors with exposure to this influential token, a key component in Ripple’s suite of technologies designed to revolutionize financial transactions.
Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, emphasized the transformative potential of XRP in a Thursday release. “We believe the Grayscale XRP Trust offers investors a gateway to a protocol with substantial real-world applications,” Sharif-Askary stated. “XRP’s ability to facilitate cross-border payments in mere seconds holds the promise of modernizing traditional financial systems.”
This latest venture follows Grayscale’s recent launch of an Avalanche Trust, designed to offer accredited investors access to AVAX, the token native to Avalanche’s blockchain network. Additionally, Grayscale has previously converted its Bitcoin and Ethereum trusts into exchange-traded funds (ETFs), marking a significant shift in how cryptocurrency investments are structured and accessed.
Also Read: XRP Surge Alert – Crypto Whales Accumulate 330M XRP, Could Break $0.55 Resistance Soon
The reintroduction of XRP into Grayscale’s product lineup signals renewed confidence in the token’s long-term value and its utility in financial technology. Despite past regulatory hurdles, the firm’s move underscores the growing acceptance and potential of XRP in transforming the global financial infrastructure.
As the cryptocurrency landscape continues to evolve, Grayscale’s XRP Trust represents a pivotal opportunity for investors seeking exposure to one of the most prominent digital assets in the market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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