Grayscale Launches XRP Trust Fund for Accredited Investors in the US

Grayscale, a leading global cryptocurrency manager, has announced the launch of an XRP trust fund in the United States. The goal of this fund is to provide accredited investors with direct access to Ripple's XRP token.

Advantages of Grayscale XRP Trust

The company's Head of Product and Research highlighted that the new trust fund will offer investors the opportunity to engage with a protocol that has real-world use cases. He emphasized that XRP, with its ability to facilitate cross-border payments, has the potential to transform outdated financial infrastructure radically.

Difference between a Trust Fund and an ETF

A closed trust fund differs from an exchange-traded fund (ETF) in that it does not require approval from the Securities and Exchange Commission. It targets a specific group of investors and is subject to fewer regulatory restrictions. However, Grayscale has left the possibility of converting the XRP trust fund into an ETF if the company receives regulatory approval.

Previous experience

Grayscale has already successfully converted its Bitcoin and Ethereum trust funds into ETFs. GBTC and ETHE have become some of the leading investment tools for institutional and private players seeking access to major cryptocurrencies like BTC and ETH.