Grayscale Investments has reopened its XRP Trust to eligible accredited investors, allowing them to gain regulated exposure to XRP. This trust provides a secure way for institutional investors to invest in XRP, a digital asset used for cross-border payments and supported by the Ripple Network, without directly purchasing or managing the cryptocurrency.
Launched in September 2024, the Grayscale XRP Trust is designed to mirror the market price of XRP, minus fees and expenses, and is benchmarked against the CoinDesk Ripple Price Index (XRX). It comes with a management fee of 2.50% and no performance fee, providing a cost-effective solution for accredited investors seeking exposure to XRP.
The reopening of the trust coincides with significant progress in Ripple Labs’ ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC had filed a lawsuit in December 2020, alleging Ripple raised over $1.3 billion through unregistered securities offerings by selling XRP. However, in July 2023, a federal judge ruled that XRP is not a security when sold to the general public on exchanges, boosting confidence in the regulatory status of XRP, although sales to institutional investors were still considered unregistered securities.
Grayscale’s move comes as part of its broader strategy to expand its digital asset offerings. The firm has recently launched several new products, including the Lido DAO (LDO) Trust and the Optimism (OP) Trust, further solidifying its commitment to diversifying its portfolio for investors.
As of January 17, 2025, XRP is trading at $3.27, with a 24-hour trading volume of $25.77 billion and a market capitalization of around $188.23 billion, marking a 7.01% price increase over the last 24 hours. The circulating supply stands at approximately 57.56 billion XRP tokens.
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