Grayscale Investments, a leading player in the cryptocurrency investment arena, has announced the launch of its new Grayscale XRP Trust on September 12. This new trust allows investors to gain exposure to XRP, the cryptocurrency associated with the XRP Ledger (XRPL).
The trust is now open for daily subscription by eligible individual and institutional accredited investors. Grayscale explains that this trust operates similarly to its other single-asset investment products, with a portfolio solely invested in XRP.
According to a report by Fox Business, the establishment of the Grayscale XRP Trust could be a precursor to an XRP exchange-traded fund (ETF), which would differ significantly from the trust structure. Fox Business reporter Eleanor Terrett elaborated on these differences, noting, “An ETF must be approved by the Securities and Exchange Commission since it is marketed directly to retail investors, while a trust’s structure and sales pitch to so-called accredited investors gets a lighter regulatory touch.”
Grayscale has outlined a four-phase product life cycle for the XRP trust, hinting at the potential future transformation of this trust into an ETF. “Each Product is intended to follow a four-stage life cycle — with the ultimate goal of uplisting the product to an ETF,” Grayscale mentioned in a FAQ. The company emphasizes that as the product advances through these stages, it will offer increased investor access and transparency.
Highlighting the significance of XRP, Grayscale’s head of product and research, Rayhaneh Sharif-Askary, emphasized its practical application: “By facilitating cross-border payments that take just seconds to complete, XRP has the potential to transform the legacy financial infrastructure.” Grayscale points to XRP’s utility in modernizing traditional financial systems, noting its capacity for facilitating swift international payments, tokenization, and decentralized finance, leveraging the decentralized and public nature of the XRP Ledger.
