Grayscale Sets Stage for XRP ETF with Launch of U.S. XRP Trust for Accredited Investors

• The recent report that Grayscale Investments has launched an XRP Trust has ignited the hope that XRP ETF could be in the pipeline. 

• Ripple’s boss, Brad Garlinghouse, has stated on multiple occasions that his company would welcome XRP ETF from any issuer. 

Crypto asset manager Grayscale Investments has announced the launch of US XRP Trust, preparing the grounds for a possible spot XRP Exchange Traded Fund (ETF). According to the report, this groundbreaking move would enable accredited investors to gain direct exposure to the digital asset without much stress. 

Commenting on this, Rayhaneh Sharif-Askary, Grayscale’s head of product and research disclosed that the XRP Trust would help investors to diversify their exposure beyond the first top two cryptos. 

As crypto investors diversify beyond Bitcoin and Ethereum, we believe in providing exposure to protocols that solve real-world problems. XRP can reduce frictions in international payments, enabling more efficiency in an evolving global economy.

According to experts, a Trust and an ETF are two different investment products. While the ETF must undergo a stringent process for final approval by the US Securities and Exchange Commission (SEC), the structure and sale pitches of the Trust to accredited investors are subjected to lighter regulatory requirements. 

Only this year, two renowned Trusts of Grayscale – Bitcoin and Ethereum have evolved into ETFs. This has created the impression that the asset manager may soon subject XRP to a similar transformation process as it publishes an intended four-phase product life cycle for its XRP Trust. 

Is XRP ETF Inevitable?

Grayscale’s Journey to converting its Bitcoin Trust into an ETF was a perilous one as the SEC rejected its application on multiple occasions. However, the asset manager took a bold decision to file an appeal with its victory preparing the grounds for the likes of BlackRock, Fidelity and Wisdom Tree to launch their ETFs. 

In May, Ripple CEO Brad Garlinghouse disclosed in an interview that it is just a matter of time for XRP ETF to roll out. 

I think it’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana {{SOL}} ETF, there’s gonna be a Cardano {{ADA}} ETF, and that’s great.

Prior to that, Garlinghouse had stated in an interview with Bloomberg that the company would gladly welcome an XRP ETF. However, he refused to comment when asked if the company was in talks with any of the ETF issuers. 

Outside the discussion around ETF, Ripple has made several moves including the acquisition of the Standard Custody & Trust. This implies that Ripple is a qualified custodian with respect to federal legislation, offering custody and escrow services. According to the Ripple boss, the Standard Custody & Trust’s license is a crucial step towards the effort to seal the “compliance first mindset”.

Subjecting the XRP price to technical analysis, a renowned trader identified as ShooterByTheWay posted an 8-hour chart to show that the asset is giving a buy signal. From the chart, the analyst explained that XRP’s bullish signal is not fully confirmed, however, some key Indicators predict a potential upsurge. 

Now $XRP with
Sharp Shooter Candles indicator:
8 hours buy signal
12 hours buy pending signal,
1D, 2D, 3D, 4D, 5D, 6D, 1W, 2W, 3W buy pending signal too.
Probably nothing ???? pic.twitter.com/oyxejoeIgx

— ShooterByTheWay (@ShooterByTheWay) September 12, 2024

At press time, XRP was trading at $0.5869 after surging by 3.8% in the last 24 hours.