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Top investment asset management firm Grayscale has launched an $XRP trust. This is the first such investment offering in the United States and could eventually lead to a spot $XRP exchange-traded fund (ETF) in the region.
$XRP sees more adoption post-SEC lawsuit
The Grayscale $XRP Trust is designed as a closed-end fund offering accredited investors direct exposure to the Ripple-associated crypto asset. Like other Grayscale single-asset investment trusts, the $XRP trust will be solely invested in the coin. $XRP is the primary asset underpinning $XRP Ledger, a distributed, peer-to-peer network created to facilitate cross-border financial transactions.
The company attempted to provide this offering in the U.S. a few years ago. Three years ago, however, the fund was dissolved after the Securities and Exchange Commission (SEC) went after Ripple Labs over $XRP's security status.
In the last year, the firm has celebrated victory in the case, especially after Judge Analisa Torres ruled in July 2023 that $XRP is not a security. With Ripple’s victory and some clarity on $XRP's categorization, the altcoin has seen some positive adoption moves. This includes its acceptance and adoption by many crypto projects, including Grayscale.
Spot $XRP ETF underway
The spot Bitcoin and Ethereum ETF issuer is certain that this new product will thrive. Speaking of the Grayscale $XRP Trust, Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askar, highlighted that "Grayscale $XRP Trust exposes investors to a protocol with an important real-world use case."
He also noted that "by facilitating cross-border payments that take just seconds to complete, $XRP can potentially transform the legacy financial infrastructure."
The Grayscale $XRP Trust may be the route for a potential spot $XRP ETF to creep onto the U.S. market.
As part of the recent product boost for $XRP, Chicago cryptocurrency derivatives exchange Bitnomial announced its intention to launch USD cash-settled futures contracts for the $XRP cryptocurrency under the "XUS" ticker.