Can Grayscale's XRP Trust revive institutional interest in XRP?
On January 17, 2024, Grayscale Investments, a digital currency asset management company, announced the reopening of the XRP (XRP) Trust to eligible accredited investors.
The Grayscale XRP Trust allows institutional and accredited investors to gain exposure to XRP through a regulated investment product. The trust is structured to reflect the market price of XRP, net of fees and expenses, without requiring investors to directly purchase or manage cryptocurrencies. XRP itself is primarily used for cross-border payments and is supported by the Ripple Network, a decentralized blockchain system that facilitates fast and efficient transactions.
XRP is a digital asset created and transmitted via the Ripple Network, a decentralized blockchain system that facilitates fast and efficient transactions. The network allows users to exchange valuable tokens called XRP with minimal friction.
Launched on September 5, 2024, Grayscale XRP Trust is benchmarked against the CoinDesk Ripple Price Index (XRX). With a 0.00% performance fee and a 2.50% management fee, the Trust provides a cost-effective solution for accredited investors seeking exposure to XRP.
The reactivation of Grayscale's XRP Trust coincides with a major development in Ripple Labs' legal proceedings with the U.S. Securities and Exchange Commission (SEC). In December 2020, the SEC filed a lawsuit against Ripple, alleging that Ripple raised more than $1.3 billion through an unregistered securities offering through the sale of XRP. In July 2023, a federal judge ruled that XRP sold to the public on digital asset exchanges is not a security, although sales to institutional investors are considered unregistered securities transactions. This partial legal victory increases confidence in XRP's regulatory position.
Grayscale has recently expanded its range of digital asset products. On December 12, 2024, the company launched Lido DAO (LDO) Trust and Optimism (OP) Trust to provide exposure to governance tokens linked to Ethereum staking and scaling solutions. These launches follow previous additions reflecting Grayscale's commitment to diversifying its investment products, including Grayscale Sui Trust in August, XRP Trust in September, and Aave Trust in October.
As of January 17, 2025, XRP is trading at $3.27 with a 24-hour trading volume of $25.77 billion. The circulating supply is approximately 57.56 billion XRP tokens, and the market capitalization is approximately $188.23 billion. In the past 24 hours, the price of XRP increased by 7.01%.
