Crypto

XRP Price Jumps 8% As Grayscale Introduces First Fund, ETF Speculation Grows

On Thursday, the XRP price saw a significant upswing, reaching a three-week peak of $0.588. This notable rise was spurred by the actions of crypto asset manager Grayscale, which has started preliminary steps towards launching an XRP Exchange-Traded Fund (ETF).

Potential Path for ETF Approval

In a strategic announcement made on Thursday, Grayscale revealed the establishment of the United States’ first XRP trust. This trust is structured as a “closed-end” fund, specifically aimed at accredited investors who are interested in gaining direct exposure to XRP.

While both a trust and an ETF serve as investment vehicles, they cater to different investor bases and follow distinct regulatory pathways. An ETF, designed primarily for retail investors, requires approval from the Securities and Exchange Commission (SEC). In contrast, a trust, which targets accredited investors, faces less stringent regulatory scrutiny. Nevertheless, with the necessary regulatory approval, a trust can be converted into an ETF. This transition is exemplified by Grayscale’s earlier efforts, where its Bitcoin and Ethereum trusts evolved into ETFs earlier this year.

XRP Price Surge

Grayscale has mapped out an extensive four-phase product lifecycle for its XRP trust, suggesting the possibility of it eventually becoming an ETF. Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, highlighted the strategic importance of the Grayscale XRP Trust. She emphasized its role in providing investors with access to a protocol that has practical real-world applications.

Despite the initial price spike following the announcement, the XRP price has since settled back to $0.570. This fluctuation comes amidst growing speculation about the potential launch of an XRP ETF, which could significantly impact the market. Market expert Doctor Profit has projected that, following Grayscale’s announcement, the industry might witness the introduction of the first spot XRP ETF within 4 to 8 months. If this prediction holds true, it could have a substantial effect on the XRP price, possibly pushing it to new all-time highs, similar to Bitcoin’s performance, which soared to new heights two months after receiving SEC approval in January.

On the daily chart, XRP’s price trend is showing an upward trajectory, indicating positive market sentiment. As investors and market watchers keep a close eye on regulatory developments, the potential for an XRP ETF remains a topic of keen interest.

Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories.I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology.My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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