Could Grayscale's XRP Trust Revive Institutional Interest in XRP?

On January 17, 2024, Grayscale Investments, a cryptocurrency asset management company Announce Reopen XRP (XRP) Trust for qualified accredited investors.

The Grayscale XRP Trust allows institutional and accredited investors to gain exposure to XRP through a regulated investment product. The fund is designed to reflect the market price of XRP, minus fees and expenses, without requiring investors to buy or manage the cryptocurrency directly. XRP itself is primarily used for cross-border payments and is powered by the Ripple network, a decentralized blockchain system that facilitates fast and efficient transactions.

XRP is a digital asset created and transferred across the Ripple network, a decentralized blockchain system that facilitates fast and efficient transactions. The network allows users to exchange tokens of value, called XRP, quickly and with minimal friction.

The Grayscale XRP Trust was launched on September 5, 2024, and is benchmarked against the CoinDesk Ripple (XRX) price index. With a performance fee of 0.00% and a management fee of 2.50%, the Trust offers a cost-effective solution for accredited investors seeking exposure to XRP.

reopening Grayscale The XRP Trust coincides with major developments in Ripple Labs' legal action with the US Securities and Exchange Commission (SEC). In December 2020, the SEC filed a lawsuit against Ripple, alleging that the company raised more than $1.3 billion through an unregistered securities offering by selling XRP. In July 2023, a federal judge ruled that Ripple (XRP) was not a security when sold to the general public on digital asset exchanges, even though sales to institutional investors were considered unregistered securities transactions. This partial Legal victory It boosted confidence in the regulatory status of XRP.

Grayscale has recently expanded its range of digital asset products. On December 12, 2024, the company launched Lidodaw (LDO(confidence and optimism)O.P) Trust, providing exposure to governance tokens associated with Ethereum's storage and scaling solutions. These launches follow previous additions, including the Grayscale Sui Trust in August, the XRP Trust in September, and the Aave Trust in October, reflecting Grayscale's commitment to diversifying its investment products.

As of January 17, 2025, XRP is trading at $3.27, and has a 24-hour trading volume of $25.77 billion. The circulating supply is approximately 57.56 billion XRP tokens, resulting in a market capitalization of approximately $188.23 billion. Over the past 24 hours, the price of XRP has seen a 7.01% increase.