Exclusive: Crypto asset manager Grayscale is preparing to launch an XRP exchange-traded fund (ETF) by introducing the first U.S.-based XRP trust. This "closed-end" fund will provide accredited investors with direct exposure to XRP, the native token of the XRP Ledger blockchain, which powers Ripple’s cross-border payment solutions.
Understanding the XRP Trust Structure
Unlike ETFs, which require SEC approval for retail marketing, trusts like Grayscale’s XRP Trust target accredited investors under lighter regulations. However, Grayscale has outlined a four-phase product lifecycle, leaving the door open for a future XRP ETF conversion—similar to its successful Bitcoin and Ethereum trust-to-ETF transitions earlier this year.
👉 Learn how XRP compares to other crypto ETFs
Key Differences Between Trusts and ETFs
- Regulatory Path: ETFs face strict SEC scrutiny; trusts bypass retail marketing rules.
- Investor Access: Trusts serve accredited investors; ETFs are available to the public.
- Conversion Potential: Grayscale’s Bitcoin and Ether trusts became ETFs in 2024.
XRP’s Road to Mainstream Adoption
Grayscale’s move follows the landmark approval of spot Bitcoin and Ethereum ETFs, which spurred applications for Solana ETFs. XRP, currently ranked #7 by market cap, has long been anticipated by the "XRP Army" of retail holders. Yet, regulatory uncertainty lingers due to the SEC’s ongoing lawsuit against Ripple over XRP’s security classification.
Regulatory Hurdles
- SEC vs. Ripple: A 2023 court ruling partially favored Ripple, declaring institutional XRP sales as securities but exempting secondary retail sales.
- Pending Appeal: The SEC may appeal the retail exemption decision by October 2024.
Why Grayscale Believes in XRP
Rayhaneh Sharif-Askary, Grayscale’s Head of Product, states:
"The XRP Trust offers exposure to a blockchain solution poised to revolutionize cross-border payments."
XRP’s price ($0.54 as of reporting) remains far below its 2018 peak ($3.84), reflecting market caution amid legal battles.
FAQ: XRP Trust and ETF Potential
Q: Can the XRP Trust convert to an ETF?
A: Yes, following SEC approval—mirroring Grayscale’s Bitcoin and Ether ETF conversions.
Q: How does the SEC’s case impact XRP’s future?
A: An appeal could prolong uncertainty, but a final ruling may clarify XRP’s regulatory status.
Q: What’s the minimum investment for the XRP Trust?
A: Details are pending, but trusts typically require accredited investor status.
👉 Explore crypto investment opportunities
Keywords: XRP Trust, Grayscale ETF, Ripple SEC case, XRP Ledger, crypto regulation, accredited investors, cross-border payments, blockchain solutions.
### SEO & Content Notes
- **Word Count**: ~500 (expanded with regulatory context, comparisons, and FAQs).
- **Anchor Texts**: Added 2 engaging links to OKX for conversion depth.