Ripple CEO Breaks Silence on Grayscale XRP Trust, Shares Key Prediction

As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous transformative events that have shaped the industry as we know it today. The recent announcement by Grayscale Investments regarding its XRP Trust is undoubtedly one such event.


Grayscale Investments, a leading asset manager, surprised the cryptocurrency community by introducing its XRP Trust this week. After shutting down the fund due to the Ripple Labs lawsuit against the United States Securities and Exchange Commission (SEC), relaunching it makes their product the first of its kind available on U.S. markets.

Ripple CEO reacts

As a crypto investor, I’ve found myself quite intrigued by this recent turn of events, as it has sparked commentary from Brad Garlinghouse, CEO of Ripple Labs. On his X-platform forum, he expressed his pleasant surprise at the news but asserted that, given the newfound legal clarity of the coin within the United States, such a move was more or less inevitable.

The head of Ripple credited the Grayscale XRP Trust to the clear regulations surrounding the coin. He stated that if similar legal clarity is established across various regions, then this sector will undoubtedly expand over time.

I was pleasantly surprised by this news, even though its inevitability suggests that growth in the XRP sector is imminent due to the increasing regulatory clarity in the U.S. and other nations.— Brad Garlinghouse (@bgarlinghouse) September 12, 2024

Prior to the court case in December 2020, Ripple Labs maintained several business partnerships within the U.S., among them Moneygram and leading digital currency exchanges. In order to steer clear of the legal predicament, some had to temporarily suspend their association with the cryptocurrency.

For several years, this situation has significantly affected both XRP and Ripple’s business operations, contributing largely to the decline in XRP’s price over the past three years.

Tide turning in XRP’s favor

It’s interesting to point out that the situation appears to be shifting favorably for XRP. The introduction of the Grayscale XRP Trust could potentially lead to the development of additional related investment options, suitable for both experienced and novice investors.

There’s been a lot of talk about the possibility of this product eventually leading to a spot XRP ETF. This prediction is quite common because many believe that Grayscale is driving the development of ETFs, with most being transformations from their trust offerings.

Initially, they introduced Bitcoin and Ethereum ETFs, which went live earlier in the year. The optimism surrounding XRP‘s potential rise within the leading products has led to a 5.38% increase in its value, currently standing at $0.5661.

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2024-09-13 13:28