Ripple News: Grayscale Launches First U.S. XRP Trust Will XRP Price Jump?
The post Ripple News: Grayscale Launches First U.S. XRP Trust Will XRP Price Jump? appeared first on Coinpedia Fintech News
In another daring move, crypto asset management giant Grayscale will launch the first U.S. XRP trust on Thursday. As per Fox Business report, Accredited investors will have direct exposure to XRP, the cryptocurrency behind Ripples XRP Ledger, which facilitates cross-border payments, through this closed-end fund. Launching this trust is significant for all those crypto fans who fear entering the market, especially XRP holders. XRP notably jumped 8% following the news.
Are good times for XRP incoming? Lets find out.
XRPs Future: Promising or Problematic?
Unlike ETFs, which are intended for retail investors and require strict SEC approval, trusts are less regulated and target accredited investors. The Grayscale XRP trust could potentially transition into an ETF if regulatory conditions allow, a move similar to Grayscales successful conversion of its Bitcoin and Ether trusts into ETFs earlier this year. This strategy highlights Grayscales goal of increasing market access for cryptocurrencies.
Ripples Legal Struggles Continue
The launch of Grayscales XRP trust comes amid ongoing regulatory issues for Ripple Labs. In 2020, the SEC alleged that XRP sales were unregistered securities, leading to a legal battle. A Manhattan judge ruled last year that XRP sales to institutional investors are securities, but those to retail investors are not. The SEC has until early October to appeal this decision, adding uncertainty to XRPs regulatory future.
Despite these hurdles, Grayscale is optimistic about XRPs potential. Rayhaneh Sharif-Askary from Grayscale highlighted the trusts ability to improve financial systems through better cross-border payments, showing confidence in XRPs long-term value.
Whats Next for XRP?
The new XRP trust could be a major step towards making XRP more institutionalized, possibly paving the way for an ETF. This development is likely to attract interest from both institutional and retail investors who have been waiting for more regulated investment options in the crypto space.
Currently, XRP is trading at $0.54, well below its all-time high of $3.84 reached in 2018 before the SECs legal actions. However, Grayscales trust could offer a fresh investment opportunity and potentially boost XRP Price performance and valuation.
Key Moments Ahead for XRP
As Grayscale moves forward with its XRP trust, the crypto community will be watching closely. This development could lead to increased interest and may drive further regulatory progress and market innovations. The SECs upcoming decisions and the potential conversion of the XRP trust into an ETF will be crucial in shaping XRPs future and its role in the broader cryptocurrency market.
Also Check Out: XRP Price Prediction: Liquidation Looms as Ripple Whales Dump Millions
Will this be a golden period for XRP holders?
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