crypto asset manager Grayscale is taking the first step towards launching an XRP exchange-traded fund (ETF). The company announced on Thursday the launch of the U.S.’s first XRP trust, a “closed-end” fund offering accredited investors direct exposure to XRP, the native token of the XRP Ledger blockchain.
News of the development was first reported by Fox Business and Eleanor Terrett.
While a trust and an ETF are distinct investment products, Grayscale’s XRP trust could potentially evolve into an ETF with the necessary regulatory approvals. This path has been previously demonstrated with Grayscale’s bitcoin and ether trusts, which successfully transitioned into ETFs this year.
Grayscale’s move comes after its pivotal role in bringing the first crypto ETFs to Wall Street. The company’s lawsuit against the SEC last year paved the way for the launch of numerous bitcoin ETFs, including those from industry giants like BlackRock and Fidelity.
The “XRP Army,” a community of retail investors holding XRP, has been eagerly awaiting an XRP ETF following the successful launches of bitcoin and ether ETFs. However, the regulatory status of XRP remains uncertain due to the ongoing legal battle between the SEC and Ripple, the company behind XRP.
Despite the uncertainties, Grayscale’s XRP trust represents a significant step towards a potential XRP ETF, potentially offering investors greater access to this digital asset. Rayhaneh Sharif-Askary, Grayscale’s head of product and research, expressed confidence in the potential of XRP, stating that the Grayscale XRP Trust provides exposure to a blockchain solution that could play a crucial role in optimizing legacy financial systems.
