Can Grayscale’s XRP Trust revive institutional interest in XRP?
January 17th, 2024 marks the announcement by Grayscale Investments, a company specializing in digital currency asset management, that they are once again accepting investments from qualified accredited investors into their Ripple (XRP) investment fund.
As a researcher, I’m sharing information about the Grayscale XRP Trust, an investment opportunity open to eligible accredited investors. This trust provides exposure to $XRP, a digital asset that drives the XRP ledger, a distributed network designed for fast and efficient cross-border transactions. If you’re interested in learning more or have questions, please visit our website for important disclosures or reach out to us directly.
— Grayscale (@Grayscale) January 16, 2025
The Grayscale XRP Trust offers institutional and affluent investors an opportunity to invest in XRP via a legally approved financial instrument. This trust is designed to mimic the market value of XRP (excluding fees and charges), without the need for investors to personally acquire or manage the cryptocurrency. XRP, a digital currency, is mostly utilized for international money transfers and boasts support from the Ripple Network – a sophisticated, distributed ledger technology that ensures swift and smooth transactions within a decentralized blockchain system.
XRP, or Ripple’s digital asset, moves through the Ripple Network – a swift and streamlined blockchain platform. This decentralized system enables users to swap valuable tokens, known as XRP, quickly and smoothly, with reduced hassle.
On September 5, 2024, the Grayscale XRP Trust was debuted, mirroring the CoinDesk Ripple Price Index (XRX). This trust, with no performance fee and a management fee of 2.50%, provides an affordable avenue for accredited investors to invest in XRP.
The reopening of Grayscale’s XRP Trust occurs at a time when Ripple Labs is experiencing significant advancements in its legal battles with the U.S. Securities and Exchange Commission (SEC). In December 2020, the SEC filed a lawsuit against Ripple, claiming that the company illegally raised over $1.3 billion by offering unregistered securities through the sale of XRP to the public. However, in July 2023, a federal judge determined that when sold to the general public on digital-asset exchanges, XRP is not classified as a security. Nevertheless, sales to institutional investors were deemed unregistered securities transactions. This partial legal victory has boosted investor trust in XRP’s regulatory status.
Grayscale has broadened its collection of digital asset investments. On December 12, 2024, they introduced the Lido DAO (LDO) Trust and Optimism (OP) Trust, offering access to tokens associated with Ethereum staking and scaling solutions. This move was preceded by the launch of the Grayscale Sui Trust in August, the XRP Trust in September, and the Aave Trust in October. These recent additions underscore Grayscale’s dedication to offering a wide variety of investment opportunities.
On January 17th, 2025, the value of one XRP is approximately $3.27. In the last 24 hours, a total of $25.77 billion worth of XRP tokens have been traded. With about 57.56 billion XRP tokens in circulation, this gives the market a capitalization of roughly $188.23 billion. Over the past day, there has been an increase in XRP price by 7.01%.
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2025-01-17 04:30