Key Takeaways
- Grayscale’s XRP trust targets accredited investors, which is different from an ETF.
- The company has been instrumental in bringing crypto ETFs to Wall Street.
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Grayscale, the world’s leading crypto asset manager, is launching the first closed-end XRP trust in the US, aiming to offer accredited investors direct exposure to the XRP token, according to a Thursday press release.
Unlike an exchange-traded fund (ETF), which requires the approval of the Securities and Exchange Commission (SEC) and is available to retail investors, the closed-end fund targets a specific investor group with fewer regulatory constraints.
This means that the trust could potentially be converted into an ETF with regulatory approval. The report noted that Grayscale had outlined a potential path for converting its new trust into an ETF in the future.
Grayscale has successfully converted its Bitcoin and Ethereum trust funds into ETFs. Its Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) are among the leading investment vehicles for institutional and individual investors seeking exposure to Bitcoin and Ethereum, respectively.
This is a developing story. We’ll provide updates as we learn more.
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