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Top asset manager Grayscale Investments shocked the crypto community when it unveiled its XRP Trust earlier this week. After closing the fund in the wake of the Ripple Labs versus United States Securities and Exchange Commission (SEC) lawsuit, relaunching this product still made it the first of its kind on U.S. markets.
Ripple CEO reacts
This landmark move has triggered commentary from Ripple Labs CEO Brad Garlinghouse. Taking to the X platform, Garlinghouse said he was pleasantly surprised to see the news. However, he claimed it was inevitable considering the legal clarity of the coin now secured in the United States.
Godfrey BenjaminThe Ripple CEO attributed this Grayscale XRP Trust to the regulatory clarity around the coin. He said that, with similar legal clarity in multiple jurisdictions, it is only a matter of time before "this space grows."
Before the lawsuit in December 2020, Ripple Labs had many U.S.-based business partners, including Moneygram and top industry exchanges. To avoid being caught in the legal saga, many had to temporarily cut ties with the coin.
This has long impacted XRP and Ripple’s businesses and has generally contributed to the price drawdown the former has recorded in the past three years.
Tide turning in XRP’s favor
It is worth noting that the tide is turning for XRP. This Grayscale XRP Trust might usher in more related products for both accredited and retail investors.
Many are already speculating that this product might eventually see the launch of a spot XRP ETF product. This forecast is common, as many see Grayscale as the primary push for ETF offerings, most of which are conversions from its trust offerings.
The first did this for its Bitcoin and Ethereum spot ETF products, launched earlier this year. The prospects of XRP advancing in the top offerings has caused its price to rebound by 5.38% at the time of writing to $0.5661.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov