XRP Surges 8% Following Grayscale’s Announcement of XRP Trust in the U.S.

• Grayscale reintroduces XRP Trust, boosting investor confidence after Ripple’s SEC legal victory.
• New XRP Trust offers accredited investors structured exposure, potentially paving way for future ETF.
• Grayscale highlights XRP’s real-world utility in transforming cross-border payments, driving institutional interest.

XRP witnessed an 8% surge after Grayscale Investments announced the launch of a new XRP Trust in the United States. This closed-end fund aims to provide accredited investors with direct exposure to XRP tokens, potentially laying the groundwork for a future spot XRP exchange-traded fund (ETF) in the country.

Grayscale’s new XRP Trust offers a structured investment option that allows investors to gain exposure to XRP without purchasing the cryptocurrency directly. This move marks Grayscale’s re-entry into the XRP market after the firm dissolved its previous XRP Trust in 2021.

The dissolution followed the U.S. Securities and Exchange Commission’s (SEC) 2020 lawsuit against Ripple Labs, which alleged that XRP was being sold as an unregistered security.

However, the landscape has shifted significantly following Ripple’s legal victory against the SEC. The court’s decision, which sided with Ripple, cleared a major regulatory obstacle that had previously clouded the future of XRP.

This legal clarity has prompted Grayscale to reintroduce its XRP Trust, signaling renewed confidence in the digital asset’s regulatory standing in the U.S. market.

Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, emphasized the real-world utility of XRP, highlighting its potential to transform cross-border payments. “We believe Grayscale XRP Trust gives investors exposure to a protocol with an important real-world use case,” Sharif-Askary stated in a press release. 

XRP could play a pivotal role in modernizing traditional financial systems by facilitating near-instantaneous cross-border transactions.

The new XRP Trust will therefore operate in the same way as Grayscale’s other single-asset investment trusts but for XRP only, which is a digital token that powers the XRP Ledger. This approach is in sync with Grayscale’s core value proposition of providing specific all access points to institutional investors looking to diversify to include digital assets. 

 In this regard, Grayscale’s decision to relist its XRP Trust as it awaits for the final verdict on the indications that the US crypto regulatory environment is slowly adopting institutional interest in the cryptocurrency assets – especially those with clearly defined use-case such as XRP.