By Abhijeet
Key Points
- XRP surged 5.04%, closing at $0.5625 after Grayscale’s XRP Trust launch.
- The XRP Grayscale Trust boosted investor confidence and speculation of an XRP-spot ETF.
- XRP hit a monthly high of $0.5897, outpacing the crypto market.
- SEC’s Ripple case continues to affect XRP’s price trajectory.
The launch of the XRP Grayscale Trust on September 12 caused a significant uptick in XRP’s price, climbing by 5.04% to $0.5625. The price surge pushed XRP to a monthly high of $0.5897 before retreating slightly.
The broader crypto market saw a 1.47% rise, but XRP Grayscale Trust news helped XRP outperform major players like Bitcoin and Ethereum.
The XRP Grayscale Trust gives institutional investors a chance to gain exposure to XRP price trends without holding the actual token.
By utilizing the CoinDesk Ripple Price Index (XRX) as a benchmark, this trust tracks XRP’s real-time spot prices from multiple platforms.
This approach allows investors to capitalize on XRP’s volatile price swings while bypassing the risks of directly storing the cryptocurrency.
According to Rayhaneh Sharif-Askary, Head of Product and Research at Grayscale, “We believe XRP Grayscale Trust gives investors exposure to a protocol with a crucial real-world use case.
XRP’s ability to facilitate cross-border payments in mere seconds makes it a potential disruptor of legacy financial systems.”
This trust launch signifies growing confidence in XRP, especially in light of its use case in international payments. With investors seeing XRP as a viable asset, XRP Grayscale Trust could attract a wave of institutional money.
Grayscale already listing the $XRP trust on their site!!
Having a trust on Grayscale is the first step of it filing to be listed as a ETF. pic.twitter.com/WA75Pfm19R— davie satoshi (@NFTdavie) September 13, 2024
XRP Grayscale Trust and the ETF Buzz
The debut of XRP Grayscale Trust has sparked excitement about the potential for an XRP-spot ETF. Grayscale has successfully converted its Bitcoin and Ether Trusts into ETFs, fueling speculation that XRP may follow suit.
In 2023, Grayscale won a landmark case against the SEC, clearing the path for Bitcoin-spot ETFs in the U.S. market. Now, crypto enthusiasts are wondering if the XRP Grayscale Trust could eventually evolve into an XRP-spot ETF.
This speculation was heightened after reports in late 2023 indicated that BlackRock had filed for an XRP-spot ETF, temporarily driving XRP prices to $0.7503 before they pulled back.
Should an XRP-spot ETF become a reality, analysts predict that XRP could hit new highs, potentially pushing toward the $0.75 mark or beyond. Investors see this as a significant milestone that could boost XRP adoption and liquidity in the broader market.
XRP Price Outlook: Can XRP Hit $1?
While the XRP Grayscale Trust has bolstered XRP’s price, the ongoing legal battle between Ripple and the SEC continues to cloud the outlook.
If the SEC chooses not to appeal rulings related to Ripple’s sale of XRP, there is optimism that XRP could target the $1.00 level. On the other hand, if the SEC appeals, XRP prices could slide below $0.40.
Currently, XRP is trading above its 50-day and 200-day exponential moving averages (EMAs), signaling a bullish trend.
A break above the $0.5739 resistance level could open the door for another retest of the $0.5897 mark. Should XRP surpass that, it might make a push toward the August high of $0.6434.
However, much depends on how the SEC vs. Ripple case develops. Investors are closely watching for any signals regarding the SEC’s intentions to appeal.
XRP Grayscale Trust: Key to Institutional Growth?
The launch of XRP Grayscale Trust is more than just another investment vehicle; it signals growing institutional interest in XRP and its underlying technology.
As the market waits for news on a potential XRP-spot ETF, investors are keen to see how this trust will affect XRP’s price action in the coming months.
With XRP’s unique use case in cross-border payments and the potential for future ETF developments, the XRP Grayscale Trust stands as a major milestone for both XRP and the broader crypto market.
For now, the trust has provided a much-needed boost to XRP’s price, but long-term trends will depend heavily on regulatory developments.
What's your reaction?
