Grayscale Unveils XRP Trust For Institutional Investors

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Grayscale Investments, a well-known digital asset management firm, has announced plans to launch a closed-end fund focused on XRP, the popular cryptocurrency token. According to a release, this new offering will allow investors to gain direct exposure to XRP, which has seen renewed interest following recent legal developments.

This move marks a significant development for Grayscale, which had previously offered an XRP fund but shut it down in 2021. The closure came in response to the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, the company behind XRP. The SEC lawsuit alleged that XRP was a security. Undoubtedly, the legal battle between Ripple and the SEC created uncertainty in the market.

XRP Trust Fuels Price Surge

It led to the delisting of XRP from major exchanges and hesitancy among institutional investors. However, recent court rulings have brought more clarity to XRP’s status. A U.S. judge ruled that XRP is not necessarily a security when sold in secondary markets. As such, this decision has rekindled interest in the token and opened the door for firms like Grayscale to re-enter the XRP market with renewed confidence.

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Intriguingly, the news of the upcoming fund caused XRP’s price to surge by 8%, reflecting heightened investor enthusiasm. By launching this XRP fund, Grayscale is signaling its confidence in the token’s long-term potential, particularly as regulatory clarity improves.

Grayscale Expands Portfolio with Avalanche Trust

Last month, the crypto asset manager introduced the Grayscale Avalanche (AVAX) Trust to the public. The move highlights Grayscale’s dedication to broadening its range of cryptocurrency investment offerings for investors. Meanwhile, this new investment trust comes after Grayscale introduced MakerDAO publicly.

In a detailed report, Grayscale explained that the trust works like the firm’s other investment products but only focuses on AVAX. In addition, the trust can be shared daily. Through this investment trust, investors can benefit from diversifying their portfolios and gaining exposure to different cryptocurrencies. It can also help spread risk and potentially capture the growth of several digital assets in the crypto market.

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Grayscale Spot BTC ETF Sees Inflows

After weeks of outflows, the Grayscale Bitcoin Trust (GBTC) finally saw its first inflow worth $63 million on May 3, ending a challenging 78-day stretch of outflows. Notably, the ETF’s reversal in fortunes is seen as a positive development.

It is important to note that Zach Pandl, the managing director of research at Grayscale, believes that store-of-value assets like Bitcoin will remain in high demand. This is due to ongoing government overspending and high interest rates in the United States.