- Grayscale Investment announced the launch of the Grayscale XRP Trust on September 12th.
- The Grayscale XRP Trust is a closed-end fund that allows accredited investors to gain exposure to XRP without directly buying and holding the cryptocurrency.
- Following the announcement, the price of XRP gained about 8%.
Grayscale Investment recently announced the creation and launch of a new financial product – the Grayscale XRP Trust. This development has coincided with a significant price increase for the XRP cryptocurrency.
What is the Grayscale XRP Trust?
The Grayscale XRP Trust is a closed-end private fund that gives accredited investors exposure to XRP without having to directly purchase and hold the cryptocurrency.
BlackRock Continues to Grow its Bitcoin Holdings as ETFs Break Outflow StreakAs a closed-end fund, the Trust will not continually issue common shares like an ETF. The shares represent the underlying XRP assets held by the Trust.
Why Did Grayscale Launch This Product?
Grayscale likely launched this new Trust to give institutional and accredited investors easier exposure to XRP and diversify their offerings.
The company has seen strong demand for their crypto investment products in the past year as interest in digital assets grows. The XRP Trust provides exposure to the world’s 6th largest cryptocurrency by market capitalization.
XRP Price Increase
Around the time of the Trust’s launch, XRP’s price climbed roughly 8%. This price boost can be attributed to the increased legitimacy and exposure that major financial players like Grayscale bring to cryptocurrencies.
The Future of XRP Investment Products
While the Grayscale XRP Trust is currently only open to accredited investors, it’s possible that they or other companies could launch publicly-traded XRP investment vehicles in the future, like a crypto ETF.
For now, this new Grayscale product marks a notable development for XRP exposure and adoption by mainstream finance. The launch has already made an impact by helping boost XRP’s price.
