🌎 Grayscale Reopens XRP Trust to Accredited Investors

Grayscale Reopens XRP Trust to Eligible Accredited Investors

Grayscale Investments Announces Reopening of XRP Trust

On January 17, 2025, Grayscale Investments announced the reopening of its XRP Trust to eligible accredited investors. The Grayscale XRP Trust is a regulated investment product designed to provide institutional and accredited investors with exposure to XRP, the digital asset powering the XRP Ledger, a distributed network used for cross-border payments.

The Trust allows investors to gain exposure to XRP without directly purchasing or managing the cryptocurrency. Its performance is structured to reflect the market price of XRP, minus fees and expenses. The XRP Ledger is supported by the Ripple Network, a decentralized blockchain system facilitating fast and efficient transactions.

Key Features of the Grayscale XRP Trust

The Grayscale XRP Trust is benchmarked against the CoinDesk Ripple Price Index (XRX). It offers a cost-effective solution for accredited investors, with a performance fee of 0.00% and a management fee of 2.50%. This makes it an attractive option for those seeking exposure to XRP.

Recent Developments in Ripple Labs’ Legal Proceedings

The reopening of the Grayscale XRP Trust coincides with significant developments in Ripple Labs’ legal proceedings with the U.S. Securities and Exchange Commission (SEC). In December 2020, the SEC filed a lawsuit against Ripple, alleging that the company raised over $1.3 billion through an unregistered securities offering by selling XRP.

In July 2023, a federal judge ruled that XRP is not a security when sold to the general public on digital-asset exchanges. However, sales to institutional investors were considered unregistered securities transactions. This partial victory has bolstered confidence in XRP’s regulatory standing.

Grayscale Expands Digital Asset Products

Grayscale has recently expanded its range of digital asset products, including the launch of the Lido DAO (LDO) Trust and Optimism (OP) Trust. These launches provide exposure to governance tokens linked to Ethereum staking and scaling solutions.

Other recent additions include the Grayscale Sui Trust in August, the XRP Trust in September, and the Aave Trust in October. These launches reflect Grayscale’s commitment to diversifying its investment products.

XRP Market Update

As of January 17, 2025, XRP is trading at $3.27, with a 24-hour trading volume of $25.77 billion. The circulating supply stands at approximately 57.56 billion XRP tokens, resulting in a market capitalization of around $188.23 billion. Over the past 24 hours, XRP has experienced a price increase of 7.01%.

Tips for Investing in XRP:

Conduct thorough research on the XRP Ledger and Ripple Network.
Understand the regulatory landscape surrounding XRP.
Consider the fees and expenses associated with the Grayscale XRP Trust.
Monitor XRP’s market performance and adjust your investment strategy accordingly.