Greyscale issues XRP trust in US
Key receivers
The Greyscale XRP trust targets accredited investors, which is different from ETFs. The company contributed by bringing crypto ETFs to Wall Street.
Share this article
World-leading crypto asset manager Greyscale is launching a closed-end XRP trust in the US, aiming to give accredited investors direct exposure to Ripple's XRP token, according to a press release on Thursday.
“We believe Greyscale XRP Trust provides investors with exposure to a protocol with a valuable real-world use case,” said Reyhaneh Sherif-Askari, Head of Product and Research at Greyscale. “XRP has the potential to transform the old financial infrastructure by facilitating cross-border payments that take mere seconds to complete.”
Unlike an exchange-traded fund (ETF), which requires approval from the Securities and Exchange Commission (SEC), a closed-end fund targets a limited group of investors with fewer regulatory restrictions. But this means that the XRP trust can be converted into an ETF with regulatory approval.
Grayscale left it open to change. brand new Trust in ETFs, as described in a separate report from FOX Business. The company made no mention of that possibility in its recent announcement.
Grayscale has successfully converted its Bitcoin and Ethereum trust funds into ETFs. The Greyscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) are among the leading investment vehicles for institutional and individual investors seeking exposure to the two leading crypto assets, Bitcoin and Ethereum.
The launch comes as the legal battle between Ripple and the SEC nears the finish line. XRP tokens, which were previously classified as securities by the SEC, were transferred as securities when they were sold to retail investors on an exchange (program sale).
Instead, the court found that Ripple's sale of XRP to institutional investors was based on written agreements that included investment contracts and securities offerings. The company was ordered to pay a civil penalty of 125 million dollars to settle case with the SEC.
This is a developing story. We will provide updates as we learn more.
Share this article
