XRP Launches as Grayscale Fund – ETF Targeted – Ripple CEO Applauds

The Ripple cryptocurrency XRP is now also represented as a fund by Grayscale. The asset manager wants to convert the XRP fund into an ETF later. Ripple CEO Brad Garlinghouse reacted positively.

Ripple (XRP) has recorded a significant increase of 7 percent since yesterday, against the trends on the crypto market – and the impetus for this momentum is quickly identified. The asset manager Grayscale issued a press release announcing the launch of an XRP trust, comparable to a closed-end investment fund. Ripple CEO Brad Garlinghouse rejoiced on X about the “pleasant surprise”.

In the crypto year 2024, part of the business is moving towards traditional exchanges. The Bitcoin ETFs that have been available since January have proven to be a great success and Ethereum ETFs have also been approved in the USA since July. Since then, other important altcoins such as XRP have also been hoping for a similarly prominent placement. The Grayscale XRP Trust presentation explicitly mentions that the aim is to convert the fund into an XRP ETF at a later date.

Grayscale’s XRP fund is essentially 100 percent backed by the Ripple cryptocurrency

This follows the same principle as previously used with Bitcoin and Ethereum, where Grayscale converted its funds into ETFs this year. A spokesperson emphasized that XRP has an important real-world use case as an instrument for cross-border transactions.

Grayscale did not mention Ripple’s legal dispute with the US Securities and Exchange Commission (SEC) when presenting the XRP Trust. A deadline expires at the beginning of October by which the SEC can still appeal against rulings that have meant defeats for it.

Conclusion: XRP Fund starting signal for a Ripple rally?

Ripple plans to launch its own new stablecoin under the abbreviation RLUSD in the coming weeks and is working on raising its profile as a financial services provider. Ripple is not directly involved in Grayscale’s XRP fund, but the support will be very welcome. Investors will now be watching closely how much capital the XRP Trust can attract – because this is a clear indicator of market response.

XRP has been lagging behind previous highs of over 3 US dollars for years, partly because its use as an international bridge currency has so far only been very limited. It should also be noted that Ripple still has a good 40 percent of all originally generated XRP in reserve. On the other hand, the Ripple community, which calls itself the XRP Army, is known for its high loyalty. The Grayscale XRP Fund therefore at least has the potential to set new price targets.

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(Featured image by Stanley van Heusden via Unsplash)

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