XRP price jumps 8% after new trust
The price of Cryptocurrency XRP has increased by 8% following the announcement that fund manager Grayscale intends to establish a trust specifically for XRP, News.Az reports.
Crypto enthusiasts are betting that the new trust from Grayscale will eventually lead to a spot XRP exchange-traded fund (ETF) in the U.S.XRP is the digital token of Ripple Labs, a technology company that operates the Ripple financial and remittance network.
The new trust will be closed-end fund and will offer accredited investors direct exposure to XRP (XRP), said Grayscale.
Grayscale previously offered an XRP Trust but dissolved it in 2021 when the U.S. Securities and Exchange Commission (SEC) launched a lawsuit against Ripple Labs claiming that the XRP token is an unregistered security under federal law.
Ripple Labs ended up winning that lawsuit, paving the way for Grayscale to relaunch its XRP trust.
The new trust will function like Grayscale’s other single-asset investment trusts and invest solely in the XRP cryptocurrency.
Grayscale took a similar approach to both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), launching trusts in the two largest cryptocurrencies before converting them to spot ETFs earlier this year.
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