Bitrabo Editorial
On Thursday, the price of XRP saw a significant increase, hitting a three-week peak of $0.588. This rise was driven by Grayscale, a prominent crypto asset manager, which announced efforts to create an XRP ETF.
Possible Route to ETF Approval
Grayscale made headlines on Thursday by introducing the first XRP trust in the United States. This trust is structured as a “closed-end” fund intended for accredited investors looking for direct investment opportunities in XRP. Read more.
While trusts and ETFs are different financial instruments, their regulatory standards and investor targets vary significantly. An ETF needs clearance from the Securities and Exchange Commission (SEC) since it is aimed directly at retail investors. In contrast, a trust, which is geared towards accredited investors, is subject to laxer regulations. However, a trust can transition into an ETF once it receives the required regulatory approval, as demonstrated by Grayscale successfully converting its Bitcoin and Ethereum trusts into ETFs earlier this year.
XRP Price Increase
Grayscale has laid out a detailed four-phase plan for its XRP trust, suggesting a potential shift to an ETF down the line.
Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, highlighted the strategic importance of the Grayscale XRP Trust, noting its ability to give investors access to a protocol that has real-world applications.
However, despite the initial price surge following the announcement, XRP has retreated to $0.570 as discussions about an upcoming ETF for the seventh largest cryptocurrency continue.
Market analyst Doctor Profit pointed out that with Grayscale’s introduction of the XRP trust, the industry could see the first spot XRP ETF within the next four to eight months. Check this out.
This forthcoming ETF approval could significantly influence the XRP price, potentially pushing it to all-time highs, similar to the Bitcoin surge witnessed two months after its SEC approval in January.
Image provided by DALL-E; chart sourced from TradingView.com.