The XRP price experienced a notable upswing on Thursday, reaching a three-week high of $0.588, propelled by crypto asset manager Grayscale, as it initiating steps towards the launch of an XRP ETF
Potential Path For To ETF Approval
In a strategic move announced on Thursday, Grayscale unveiled the United States’ maiden XRP trust, designed as a “closed-end” fund targeted at accredited investors seeking direct exposure to XRP.
While both a trust and an ETF represent distinct investment vehicles, the regulatory requirements and target investor base differ significantly. Notably, an ETF necessitates approval from the Securities and Exchange Commission (SEC) as it caters directly to retail investors.
Conversely, a trust, aimed at accredited investors, undergoes a less stringent regulatory process. However, with the appropriate regulatory green light, a trust can transition into an ETF, as exemplified by Grayscale’s Bitcoin and Ethereum single-asset investment trusts evolving into ETFs earlier this year.
XRP Price Surge
Grayscale has outlined a comprehensive four-phase product life cycle for its XRP trust, hinting at the potential transformation into an ETF in the future.
Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research, underscored the strategic significance of the Grayscale XRP Trust, emphasizing its role in providing investors with exposure to a protocol with tangible real-world utility.
Despite the spike at the time of the announcement, the XRP price has fallen back to $0.570 as speculation grows for an ETF to invest in the seventh largest cryptocurrency on the market.
Notably, market expert Doctor Profit claimed that as Grayscale announced the first XRP trust, most likely in 4 to 8 months the industry could see the first spot XRP ETF.
This could have a notable impact on the XRP price, potentially leading to new all-time highs, as in the case of Bitcoin, which hit a new high two months after being approved by the SEC in January.
Featured image from DALL-E, chart from TradingView.com
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