Grayscale to Launch First XRP Fund

Digital asset manager Grayscale Investments has announced the launch of a closed-end fund based on XRP.

We are proud to announce the creation of a new single-asset crypto investment fund, Grayscale $XRP Trust, which will be available through private placement.

Available to eligible accredited investors.

Read the press release: https://t.co/rOmVPUSFxZ pic.twitter.com/WEhk849RmT

— Grayscale (@Grayscale) September 12, 2024

The product is intended for individual and institutional accredited investors. It operates similarly to other trusts, requiring an application to the company for subscription/redemption.

Grayscale has pledged to make efforts to list the fund on the secondary market. However, the company does not guarantee a positive outcome.

The new instrument will continue the expansion of the product line. Previously, it included trusts based on Avalanche, MakerDAO, Bittensor and Sui, as well as a basket of tokens focused on AI.

XRP responded positively to the news. According to CoinGecko, at the time of writing, daily rates reached 7.4% compared to 1.2%–5.7% among other assets in the top 10 cryptocurrencies.

In 2024, Grayscale succeeded in converting two trusts—GBTC and ETHE—based on Bitcoin and Ethereum into ETFs, available to a wide range of participants.

FOX Business did not rule out that the company aims to achieve a similar status for the XRP-based trust.

In July 2023, the fintech firm Ripple, associated with the asset, achieved a partial victory in a long-standing case against the SEC. The court ruled that programmatic sales and other distributions of the token do not constitute an offer and sale of investment contracts.

The SEC then attempted to challenge the decision, but the court dismissed the Commission’s interlocutory appeal. The agency still has the opportunity for another attempt. The company’s chief legal officer, Stuart Alderoty, expressed confidence that this will not change the status of XRP.

Back in August 7, Judge Analisa Torres fined Ripple $125 million in the litigation with the SEC. Initially, the agency demanded $2 billion.