Ripple and Grayscale Hit Major Milestone: Is an XRP ETF Launch Imminent?
Ripple and Grayscale just blew out their first birthday candles—and the crypto world's buzzing about what comes next.
The Regulatory Dance
XRP's legal clarity gave institutions the green light they'd been waiting for. Grayscale's move into XRP products wasn't just a bet—it was a statement.
ETF Speculation Heats Up
Traders are placing early bids on who files first. BlackRock? Fidelity? The SEC's inbox is about to get crowded—though we all know how much they love reading crypto applications.
Market Impact
An XRP ETF wouldn't just open floodgates—it would rewrite the institutional playbook. Forget trading against degens on Binance—this is Wall Street's game now.
One cynical finance jab? Traditional bankers will finally embrace XRP—right after they finish shorting it.
What Happened in 1 Year?
CryptoPotato reported the XRP Trust launch, which saw the light of day on September 5, 2024, and was immediately followed by an impressive price increase for the underlying asset. Yet, its valuation at the time of under $0.6 was nowhere NEAR the heights of today at almost $2.8.
The product had an impressive initial year as it enables investors to gain exposure to the token without having to worry about the challenges of buying, storing, and safekeeping it, as the website explains. The Trust tracks the XRP market price, but the fees and expenses are more modest.
With 301,500 outstanding shares, the total assets under management have skyrocketed to almost $17 million, according to the site as of Friday’s closing.
ETF Next?
As with its BTC and ETH Trusts, Grayscale was quick to file with the US SEC to convert its XRP product into a fully regulated spot exchange-traded fund. This happened shortly after Donald J. Trump was inaugurated as the 47th US president, Gary Gensler stepped down as SEC Chair, and it became more than evident that there would be more favorable regulations for the cryptocurrency industry.
Given its success in converting its Bitcoin and ethereum Trusts into spot ETFs, the filing with the securities regulator is regarded as almost a guaranteed path for an XRP ETF. However, Grayscale has tons of competition in that field as the total number of such applications sitting on the SEC’s desk is 15.
The odds for an approval by the end of the year on Polymarket have skyrocketed to 94% after dipping below 70% just a few weeks ago. Moreover, many experts believe that the actual chances are closer to 100%.
