Grayscale launches new XRP fund, token surges 8.5%

Grayscale Investments announced on Thursday (12) the launch of a new closed-end XRP fund. In practice, the manager will allow investors to gain exposure to the token, which is the seventh largest cryptocurrency in the world by market value. The total market value of XRP exceeds US$ 32 billion, according to data from CoinGecko.

This announcement marks Grayscale’s return to managing an XRP fund, after the firm closed its previous fund in 2021. At the time, the closure was due to the United States Securities and Exchange Commission’s (SEC) lawsuit against Ripple, the company that uses XRP and is most associated with the asset.

The SEC argued that XRP should be classified as a security. This resulted in a period of regulatory uncertainty for the token.

Following the news of the launch of the new XRP closed-end fund, the token has seen an 8.4% increase in the last 24 hours. The price went from $0.52 to $0.57, according to data from CoinGecko. This is the highest price recorded by XRP since the end of August.

Grayscale Announces XRP Fund

The market welcomed Grayscale’s announcement, especially investors seeking exposure to cryptocurrencies with real use cases.

In a statement, Rayhaneh Sharif-Askary, head of products and research at Grayscale, highlighted XRP’s potential to transform traditional financial infrastructure.

“We believe the Grayscale XRP Trust offers investors exposure to a protocol with a significant real-world use case. By facilitating cross-border payments that are completed in a matter of seconds, XRP has the potential to transform legacy financial infrastructure,” he said.

The launch of the new XRP closed-end fund comes as Grayscale continues to expand its cryptocurrency product offering. Earlier this month, the firm also launched an Avalanche (AVAX) fund, providing qualified investors with the opportunity to invest in the native token of the Avalanche blockchain network.

Additionally, Grayscale has already converted its Bitcoin and Ether funds into exchange-traded funds (ETFs), reinforcing its position as one of the leading cryptocurrency investment firms.

Grayscale’s return to the XRP market is seen as a strategic move, especially as cryptocurrencies continue to gain traction as alternative investments and solutions for cross-border financial transactions. The company is betting that XRP, with its focus on fast and efficient global payments, could attract even more investors as cryptocurrency regulations evolve.