Grayscale Investments, a leading cryptocurrency investment company, has introduced a new trust linked to XRP, a popular cryptocurrency.
On September 12, Grayscale officially announced the launch of the Grayscale XRP Trust. This new product allows investors to gain exposure to XRP without having to directly buy or hold the cryptocurrency. The trust is now open for daily subscriptions from eligible individual and institutional accredited investors.
Similar to Grayscale’s other single-asset trusts, the XRP Trust is solely invested in the XRP token, which powers the XRP Ledger (XRPL).
Possible XRP ETF in the Future
According to a report from Fox Business, the launch of the XRP Trust could potentially lead to the creation of an XRP exchange-traded fund (ETF) in the future. An ETF would be available to retail investors, but it requires approval from the U.S. Securities and Exchange Commission (SEC).
Fox Business reporter Eleanor Terrett noted that trust products, like the Grayscale XRP Trust, face lighter regulatory requirements because they are aimed at accredited investors rather than the general public.
Grayscale’s Four-Phase Plan
Grayscale also shared a four-phase product lifecycle for the XRP Trust, which could eventually lead to the launch of an XRP ETF. As the product moves through these phases, it is expected to offer increased transparency and accessibility for investors.
The ultimate goal is to convert the trust into an ETF, which would provide even broader market access.
Why XRP?
Rayhaneh Sharif-Askary, Grayscale’s head of product and research, emphasised the importance of XRP’s real-world use case in the official announcement. “By facilitating cross-border payments that take just seconds to complete, XRP has the potential to transform the legacy financial infrastructure,” she said.
This new trust provides an opportunity for investors to benefit from the potential growth and adoption of the XRP protocol.
