Grayscale announces launch of XRP trust fund, XRP coin price rises by over 8% upon hearing the news

Grayscale, a cryptocurrency asset management company, announced on Thursday the launch of the Grayscale XRP Trust, a closed-end fund that allows investors to gain exposure to XRP tokens.

We believe that Grayscale XRP Trust can provide investors with access to a protocol with significant practical use cases, "Rayhaneh Sharif Askari, Grayscale's head of products and research, said in a press release on Thursday." By promoting cross-border payments that can be completed in just a few seconds, XRP has the potential to change traditional financial infrastructure

Grayscale indicates that this new fund is now open for daily subscription by eligible individuals and institutional investors. After the announcement of this news, the price of XRP token skyrocketed by over 8% in a short period of time, and then quickly fell back. The XRP price before the deadline is $0.56.

Grayscale once managed an XRP fund, which was later closed in 2021 after the US Securities and Exchange Commission (SEC) sued the XRP issuing company Ripple and claimed that the token was a security under US law.

Grayscale has issued trust funds for various tokens in the past two months, including Avalanche's AVAX, MakerDAO (now Sky)'s MKR, Sui's SUI for memory blockchain, and Bittensor's TAO. The company was also granted permission this year to convert its Bitcoin and Ethereum trust funds into spot exchange traded funds (ETFs).