Grayscale launches first US XRP trust with potential for ETF

Asset management firm Grayscale is set to launch the first US-based XRP (CRYPTO:XRP) trust, offering eligible investors direct exposure to Ripple's native token. 

This move could pave the way for a possible exchange-traded fund (ETF) if the trust gains regulatory approval from the Securities and Exchange Commission (SEC). 

Unlike ETFs, which require more stringent regulatory approval from the SEC before being available to retail investors, trusts have a simpler structure and are targeted at select, accredited investors. 

This lighter regulatory touch allows Grayscale to have a first-mover advantage in the XRP market. 

Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askary, commented, “We believe Grayscale XRP Trust provides investors with exposure to a blockchain solution that is potentially positioned to play a crucial role in optimizing legacy financial systems by streamlining cross-border payments.” 

Grayscale has already released a four-stage product life cycle plan for the XRP trust and may pursue regulatory approval to convert it into an ETF in the future. 

If approved, the ETF would provide broader market access and investment opportunities for XRP, following in the footsteps of recent approvals for Bitcoin ETFs. 

This announcement comes a day after Grayscale launched a Sui Trust, allowing accredited investors access to SUI (CRYPTO:SUI). 

Alongside XRP and SUI, Grayscale's other trusts include Solana (CRYPTO:SOL), Polkadot (CRYPTO:DOT), Aave (CRYPTO:AAVE), Near Protocol (CRYPTO:NEAR), and Stacks (CRYPTO:STX), all open for daily subscription by eligible investors. 

Grayscale's ongoing expansion of its product offerings reflects the firm's influence in the digital asset space. 

The firm’s earlier victory against the SEC in August 2023 set a precedent that led to spot Bitcoin (CRYPTO:BTC) ETF approvals in January 2024, inspiring other major financial firms like BlackRock, Fidelity, and WisdomTree to pursue their own Bitcoin ETFs.

At press time, the XRP price was $0.56.