The Grayscale XRP Trust is the new project from Grayscale Investments, a major player in the cryptocurrency trading market. This trust, which was announced on September 12, is meant to give buyers access to XRP, the digital asset that goes with the XRP Ledger.
Individual and business approved investors who meet the requirements can now subscribe to the Grayscale XRP Trust every day. This trust works like Grayscale’s other single-asset investment trusts, but it only invests in XRP.
What’s the Difference Between Trust and ETF?
The Grayscale XRP Trust is a big step forward, but it’s not the same as a crypto exchange-traded fund (ETF). The U.S. Securities and Exchange Commission (SEC) has to approve ETFs because they are sold to regular people. Trusts like Grayscale’s, on the other hand, are aimed at qualified donors and are therefore subject to less strict oversight by regulators.
Grayscale has made a four-step plan for the XRP Trust, which makes it look like it could become an ETF in the future. This strategy worked well for the company with their Bitcoin and Ethereum trusts, which turned into ETFs this year.
Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askary, talked about how important XRP is, pointing out that it helps make cross-border payment systems better and that it might have an effect on standard financial infrastructure. The XRP Ledger is known for having a public and autonomous blockchain that can be used for many things, such as cross-border payments and decentralized banking.
The start of this XRP Trust by Grayscale is in line with its larger plan to provide more investment choices in the cryptocurrency space. The company, which is known for having large amounts of Bitcoin and Ethereum, is still looking for new ways to add digital assets to standard banking systems.
As Grayscale clears the way for a possible XRP ETF, people in the financial world will be paying close attention to how this event plays out and what it means for the future of investing in cryptocurrencies.
