Grayscale Returns to XRP with a New Fund
Grayscale, the world’s largest digital currency asset manager, has launched a new closed-end fund focused on XRP, causing an 8% rise in the token’s price. This move marks Grayscale’s return to XRP after previously shutting down its original XRP fund in 2021, following the SEC’s lawsuit against Ripple, alleging that XRP is a security.
XRP Fund to Provide Investor Exposure
The new fund will give accredited investors exposure to XRP, the seventh-largest cryptocurrency by market capitalization, currently valued at over $32 billion. Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, emphasized the importance of XRP, noting, "Grayscale XRP Trust gives investors exposure to a protocol with an important real-world use case.” XRP is widely recognized for its role in enabling fast and low-cost cross-border transactions.
Growing Institutional Interest in XRP
This fund aims to attract institutional investors looking for crypto exposure without the complexities of direct ownership or trading. The relaunch follows Ripple’s partial legal victory against the SEC, which renewed interest in XRP’s potential. With its extensive experience in managing digital assets, Grayscale continues to expand its offerings, having converted both its Bitcoin and Ether trusts into ETFs.
Information Source by The Block.
