Grayscale Investments is set to announce the launch of the U.S.’s first XRP trust.
This closed-end fund will provide accredited investors with direct exposure to XRP, the native token of the XRP Ledger, a blockchain network primarily used for cross-border payments.
While trust and an exchange-traded fund (ETF) are distinct investment products, Grayscale’s XRP trust could potentially evolve into an ETF in the future.
The company has outlined a four-phase product life cycle, leaving open the possibility of obtaining the necessary regulatory approvals to convert the trust into an ETF.
Ripple’s CEO, Brad Garlinghouse, said : “Was (pleasantly) surprised to see this news…though inevitable, as well?! As I’ve said before, with XRP having regulatory clarity in the US and other countries, I expect it’s only a matter of time for this space to grow.”
XRP price reacted positively to the news. It increased by 6.1% since the Grayscale update came out, reaching a value of $0.5701.
Its market capitalization jumped to $32.1 billion, making it the seventh crypto by that metric. The launch of the first U.S. XRP trust may act as a positive catalyst for the coin.
