coindesk.com
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.