Grayscale launches new XRP closed-end fund

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The Block2024/09/11 16:00

By:The Block

Quick Take Grayscale, which has already converted both bitcoin and ether trusts into ETFs, plans to launch an XRP “closed-end” fund that will allow investors to gain exposure to the popular token. The firm had previously launched an XRP fund and then shut it down in 2021 after the SEC asserted the token was a security.

Grayscale said Thursday it's planning to launch an XRP +7.75% "closed-end" fund that will allow investors to gain exposure to the popular token.

The firm once managed an XRP fund it then shut down in 2021 after the U.S. Securities and Exchange Commission sued Ripple and argued that the digital asset XRP is a security under U.S. law. Ripple, which utilizes XRP, the native asset of the XRP Ledger, is the company most closely associated with the token.

XRP is the world's seventh most popular cryptocurrency based on market capitalization, which sits at over $32 billion according to The Block's XRP price page . The token appeared to rise about 8% on the news.

Earlier this month, Grayscale Investments launched an Avalanche trust in order to provide accredited investors exposure to AVAX, the native token of Avalanche's blockchain network.

The investment firm has converted both bitcoin and ether trusts into ETFs.

The is a developing story.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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