Grayscale’s XRP Trust: A Step Towards Mainstream Adoption for XRP?

• Ben Armstrong has predicted a bright future for XRP.
• Grayscale recently launched an XRP trust.
• Analysts believe Grayscale will convert the XRP trust to a spot ETF in the future.

Crypto analysts have forecasted a bright future for XRP after recent developments at Ripple. On X (formerly Twitter), they expressed their belief that XRP has institutional interest and that the “XRPArmy” will succeed. This optimism is seen as the start of a significant upward movement for Ripple.

Do people understand now why I’ve been telling everyone that $XRP has institutional interest now and $ADA simply doesn’t?

This is just the beginning for big @Ripple moves. The #XRPArmy will prevail.https://t.co/FnjxsLgNiN

— BitBoy (@BenArmstrongsX)
September 12, 2024

This positive outlook stems from the launch of an XRP trust by Grayscale, a leading US-based crypto asset manager. This new trust provides accredited investors direct access to XRP. Many in the crypto community speculate that this could lead to Grayscale launching an XRP exchange-traded fund (ETF).

Analysts point out that Grayscale launched Bitcoin and Ethereum ETFs earlier this year, both of which began as trust funds. They suggest that XRP could follow a similar path, with the new trust eventually becoming an XRP ETF.

Read also: XRP ETF Speculation Fuels Spike in Options Market Activity

It is important to remember that trusts and ETFs are distinct investment products. Trusts operate under lighter regulations and are limited to accredited investors, while ETFs require SEC approval and can be marketed directly to retail investors.

Grayscale can be attributed as a trailblazer in the U.S. cryptocurrency ETF space, credited with helping the industry achieve its ETF goals. The firm famously engaged in a legal battle with the SEC before securing approval to convert its Grayscale Bitcoin trust into a spot ETF.

This breakthrough paved the way for other investment firms, including Wall Street giants like BlackRock and Fidelity, to launch a wave of Bitcoin spot ETFs earlier this year. Four months later, the SEC allowed the launch of spot Ethereum ETFs, granting retail investors access to the leading altcoin.

XRP’s resurgence and the optimism within its community follow a recent court ruling ordering Ripple to pay a $125 million penalty for violating SEC rules. The crypto community views this ruling as the end of a long legal battle that had hindered XRP’s development.

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