XRP Price Jumps 8% As Grayscale Introduces First Fund, ETF Speculation Grows

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and the evolution of various investment vehicles. The recent surge in XRP price following Grayscale’s announcement of its XRP Trust is an interesting development that warrants close attention.

On Thursday, the value of XRP saw a significant surge, hitting a three-week peak at $0.588, primarily due to cryptocurrency asset manager Grayscale taking actions toward the introduction of an XRP Exchange Traded Fund (ETF).

Potential Path For To ETF Approval

On Thursday, I announced a strategic shift by revealing Grayscale’s first US-based XRP Trust, a “closed-end” investment product tailored for accredited investors aiming for direct exposure to the digital asset, XRP.

While both a trust and an ETF represent distinct investment vehicles, the regulatory requirements and target investor base differ significantly. Notably, an ETF necessitates approval from the Securities and Exchange Commission (SEC) as it caters directly to retail investors. 

From my research perspective, for accredited investors, a trust follows a less demanding regulatory pathway. Given the necessary approval from regulators, this trust can metamorphose into an Exchange-Traded Fund (ETF), as demonstrated by Grayscale’s Bitcoin and Ethereum single-asset investment trusts transforming into ETFs earlier this year.

XRP Price Surge

Grayscale has detailed a thorough, four-step plan for its XRP trust, suggesting it may one day evolve into an Exchange Traded Fund (ETF).

Rayhaneh Sharif-Askary, who leads product and research at Grayscale, highlighted the strategic importance of the Grayscale XRP Trust. She pointed out that this trust allows investors to access a protocol that has practical, everyday use in the real world.

Regardless of its initial surge following the announcement, the value of XRP has since dropped to approximately $0.570 as anticipation builds around the potential launch of an exchange-traded fund (ETF) for this digital currency, which currently ranks seventh in the global cryptocurrency market.

Significantly, Dr. Profit, a recognized market authority, predicted that following Grayscale’s announcement of its XRP trust, it’s possible that within 4 to 8 months we might witness the debut of the first XRP-based Spot Exchange Traded Fund (ETF) in the industry.

The influence here might be significant for XRP‘s pricing, possibly pushing it towards unprecedented peaks, similar to Bitcoin, which achieved a fresh record two months following its approval by the Securities and Exchange Commission in January.

XRP Price Jumps 8% As Grayscale Introduces First Fund, ETF Speculation Grows

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2024-09-12 17:56