Grayscale Investment has announced the creation of the Grayscale XRP Trust, a closed-end fund that allows accredited investors to explore XRP without directly purchasing the cryptocurrency.
First Cryptocurrency Company in the U.S.
The Grayscale XRP Trust is the first of its kind in the U.S. and could pave the way for an XRP ETF. While there is no clear indication of the launch of an XRP ETF, many speculate that the company might convert its trust to an ETF. Grayscale has already converted its Bitcoin and Ether trusts to ETFs. Traders note that trusts face fewer regulatory oversights compared to ETFs, which are monitored by the U.S. Securities and Exchange Commission.
4-Phase Plan
Grayscale revealed that the trust would undergo the same 4-phase product cycle as its other investment products. Currently, the Grayscale XRP Trust is in the private placement phase, allowing accredited individual and institutional investors to interact with the product. Shares acquired during this period are restricted for one year.
XRP Price Spike
Following the announcement of the Grayscale XRP Trust, the price of XRP has significantly risen, despite beginning the day in the red. As of writing, the price of XRP has increased by approximately 8%, reaching $0.56. Market capitalization and 24-hour transaction volume also spiked significantly, crossing $1.5 billion. The recovery comes after a dip in XRP prices on September 11.
The release of the Grayscale XRP Trust has led to increased interest and prices for XRP. Investors and traders are keenly observing the development of this product and its impact on the market.
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