Grayscale Unveils XRP Trust, Eyeing Future ETF Opportunity

Grayscale Investments has launched the Grayscale XRP Trust, offering accredited investors the chance to gain exposure to XRP, the cryptocurrency that powers the XRP Ledger (XRPL). 

According to a press release , this trust, open for daily subscription, offers a simplified way for institutional and individual accredited investors to invest in XRP without needing to directly manage the cryptocurrency. The XRPL is a decentralized, peer-to-peer blockchain designed for efficient cross-border financial transactions. 

Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, highlighted XRP’s utility in facilitating cross-border financial transactions, emphasizing its speed and potential to replace traditional financial infrastructure.

He also added that XRP has the ability to complete international payments in seconds, significantly faster than current systems, such as SWIFT, which can take several days.

Grayscale’s XRP Trust functions like its other single-asset investment trusts, including the Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). However, unlike a typical exchange-traded fund (ETF), the trust targets accredited investors and faces less regulatory scrutiny.

Fox Business reported that this could pave the way for an eventual XRP ETF, as Grayscale follows a four-phase product life cycle for its trusts, with the ultimate goal of converting them into ETFs. An ETF would provide broader retail investor access but requires approval from the SEC, which subjects it to stricter regulations.

Grayscale has already established itself as a leading player in the crypto investment space, managing major products like GBTC, which holds over 222,300 BTC ($12.8 billion). The firm has seen significant market activity, including multi-billion dollar outflows from its recently launched spot Ether ETFs.

Following the July launch of two spot Ether ETFs , Grayscale also reported multi-billion dollar withdrawals from the new offerings.