A surge in XRP price followed the announcement that Grayscale is launching an XRP Trust on September 12. The token saw a rapid increase of over 6%, pushing its value to $0.56715. The market cap of XRP also spiked by $2.59 billion in a matter of minutes, reaching a total market value of $32.04 billion post the Grayscale news.
XRP’s current trading position comfortably exceeds its 200-day simple moving average, a positive signal for traders. Traders are now closely monitoring key support at $0.50382 and resistance at the $0.60 level. With growing bullish momentum, XRP could potentially test higher resistance levels in the future, especially with increasing institutional interest due to Grayscale’s trust offering.
Grayscale’s decision to launch an XRP Trust follows Ripple’s legal victory against the SEC, which has removed uncertainties surrounding XRP’s future. The move by Grayscale is considered crucial as it paves the way for a potential spot XRP exchange-traded fund (ETF) in the U.S., opening doors for broader institutional investment in XRP.
Moreover, Grayscale’s reentry into the XRP realm holds significance as it comes after the dissolution of its earlier XRP Trust in 2021 due to the SEC’s lawsuit against Ripple. The launch of the new closed-end fund provides accredited investors with direct exposure to XRP, aligning with Grayscale’s strategy for cryptocurrency investment products.
The announcement of the Grayscale XRP Trust not only impacts XRP’s short-term price but also has the potential to revolutionize the digital currency landscape in the long run. If a spot XRP ETF materializes, it could attract a fresh influx of institutional investors, enhancing liquidity and potentially stabilizing XRP’s price for cross-border payments.
Despite the challenges faced by XRP in the past, recent legal and market victories have injected renewed confidence in the project. With Ripple’s momentum and Grayscale’s trust fund attracting institutional investment, XRP appears poised for a new phase focused on real-world adoption and growth.