XRP ETF on the Horizon? Grayscale Unveils New XRP Trust for US Investors

Grayscale Investments has launched a US XRP Trust, allowing accredited investors to invest in XRP. The trust’s debut is fueling speculation about a forthcoming XRP ETF, which could broaden retail investors' access in the near future.

Grayscale Launches US XRP Trust

Major cryptocurrency investing business Grayscale Investments has introduced a new crypto trust that is associated with the XRP coin.

The formation and public launch of Grayscale XRP Trust, an investment vehicle for XRP, was formally announced by Grayscale on September 12th.

According to the company, approved individuals and institutions can start subscribing to Grayscale XRP Trust every day. According to Cointelegraph, it operates similarly to Grayscale's other single-asset investment trusts and has a single investment in the XRP Ledger token (XRPL).

XRP ETF Potentially in Development

A separate product, called XRP exchange-traded fund, may be in the works after the debut of Grayscale XRP Trust, according to a Fox Business story.

"An ETF must be approved by the Securities and Exchange Commission since it is marketed directly to retail investors, while a trust’s structure and sales pitch to so-called accredited investors gets a lighter regulatory touch," Eleanor Terrett of Fox Business reported.

Four-Stage Product Life Cycle Planned

The report also noted that Grayscale has laid out the XRP trust's proposed four-stage product life cycle, which could mean that an XRP ETF is on the horizon.

"Each Product is intended to follow a four-stage life cycle — with the ultimate goal of uplisting the product to an ETF," Grayscale stated on a page that was specifically dedicated to answering frequently asked questions from investors. "As a product progresses through this intended lifecycle, there is a correlated increase in investor access and transparency," the company said.

XRP's Real-World Use Case Highlighted

Rayhaneh Sharif-Askary, head of product and development at Grayscale, made a point in the release to highlight how the Grayscale XRP Trust exposes investors to a protocol "with an important real-world use case." Furthermore, he stated:

“By facilitating cross-border payments that take just seconds to complete, XRP has the potential to transform the legacy financial infrastructure.”

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