Grayscale to Introduce Groundbreaking U.S. XRP Trust, Setting Stage for Future ETF

Highlights:

• Grayscale is on the verge of introducing a first-ever U.S. XRP trust.
• By launching the trust entity, Grayscale will delve into an XRP ETF commodity in the future.
• XRP price has surged by over 4% in its 24-hour-to-date variable, underscoring the possibilities of favorable sentiments steaming from the proposed XRP trust release.

According to renowned business and investment news media, Fox Business, crypto asset manager Grayscale could pioneer the launching of an XRP Exchange Traded Fund (ETF). Interestingly, Grayscale aims to attain the landmark achievement via an indirect pathway involving an initial U.S. XRP trust debut.

For context, the crypto asset management firm has begun the procedures to establish the XRP trust by adopting concrete steps. It recently released an intended four-phase product life cycle that mirrors every detail of the proposed trust.

Grayscale Reportedly Set to Announce First U.S. XRP Trust Today

According to Fox Business, Grayscale is set to announce the launch of the U.S.'s first XRP trust today, marking a major step towards offering accredited investors direct exposure to XRP. While not yet an ETF, the… pic.twitter.com/L57pJnXDj7

— The Wolf Of All Streets (@scottmelker) September 12, 2024

Establishing an XRP ETF from the Token’s Trust

Ordinarily, many market participants tend to misunderstand the concepts of XRP trust and ETF. While both entities might share similar characteristics, they have unique discrepancies. An ETF project must receive regulatory approval from the United States Securities and Exchange Commission (SEC).

On the other hand, an XRP trust does not require so much regulatory scrutiny before endorsement. The strict regulatory involvement associated with approving an ETF stems from the fact that it entails marketing directly to retailers. On its part, a trust involves only accredited investors.

After establishing the trust entity, the procedures involved in converting it to an ETF do not require so much bureaucracy relative to setting up such commodities as an initial target. Grayscale has proved the assertion right, having advanced two of its single assets investment trust entities to ETFs.

For context, Grayscale’s Bitcoin and Ethereum trusts became ETFs within this year. However, the procedures involved in achieving its first ETF from Bitcoin Trust came with a heated court battle with the SEC. Fortunately, the asset manager firm was victorious in the legal dispute and eventually introduced crypto ETFs to Wall Street. Consequently, the court case success paved the way for several entities like BlackRock and Fidelity, culminating in cryptocurrency ETFs’ spikes.

Possibilities of Achieving a Similar Landmark with XRP

Unlike Bitcoin and Ethereum, which have little or no regulatory constraints, XRP appears to mirror a complicated state. XRP’s highest distributor Ripple is in a protracted legal battle with the SEC. The United States regulatory agency sued Ripple around late 2020. Notedly, the lawsuit claimed that the payment platform facilitated the sales of unregistered securities via XRP.

In 2023, Ripple scored a partial victory after the court declared that XRP sales to retail investors were not securities. Consequently, the court’s decision resulted in an XRP rally that saw the token attain a 2023 all-time high (ATH) at about $0.93. Despite the widely celebrated win, the case is still active, as the SEC has not shown any signs of relenting.

However, with the United States election drawing closer, chances abound that the polls’ outcome could become a game changer. Leading contestants Kamala Harris and Donald Trump have been vocal in their pro-crypto stance. Interestingly, Trump vowed to sack the SEC Chairman, Gary Gensler, on his first day in office if re-elected.

Grayscale Announces its First US XRP Trust 🤩
 
It is giving accredited investors exposure to #XRP.
 
This is the first major step after the Ripple won the case against XRP.
 
Do you think the $XRP ETF is coming next? 👇 pic.twitter.com/8sH4KoHira

— Wise Advice (@wiseadvicesumit) September 12, 2024

XRP Records Over 4% Surge in 24 Hours

At the time of press, XRP is changing hands at approximately $0.56, reflecting a 4.6% upswing in the past 24 hours. It boasts about $31.57 billion in market capitalization and is the seventh most valuable cryptocurrency. Interestingly, its trading volume is up by about 75.64% with a $1.585 billion valuation.