Grayscale’s XRP trust has grown noticeably since launch, a development which spells positive momentum for the digital asset. As one of the leading cryptocurrency asset managers in the world, Grayscale’s decision to unveil the first XRP trust in the US last week signaled the beginning of an institutional influx of funds into the cryptocurrency. Since its debut, the Grayscale XRP Trust has performed remarkably well. Data indicates that the trust’s value has surged by 11.44%, a clear indication of strong demand from institutional investors.
Value Of Grayscale XRP Trust Rallies
Grayscale’s XRP trust tracks the price of the altcoin, and investors buy shares of the trust to gain exposure to the cryptocurrency. When talking about the momentum building behind Grayscale’s XRP trust, we are looking at its Net Asset Value (NAV). The NAV is a measure of the value of each share in the trust and is calculated after every business day. A rising NAV is an indicator of increased institutional investment in the trust. As such, an increase in the NAV relates to a bullish sentiment among traders and the spot price of XRP.
According to the manager’s website, NAV for the XRP trust currently stands at $11.79, which translates to an increase of slightly above 11.4% in just one week after launch. This impressive rise is not a result of chance but rather the outcome of several positive developments within the broader XRP ecosystem, which work together to signal the continuation of positive momentum.
What Is Driving The Momentum?
One of the primary drivers behind this bullish momentum is the highly anticipated launch of Ripple’s USD stablecoin, RUSD. The upcoming stablecoin has generated considerable excitement in the cryptocurrency community, as it is expected to play a pivotal role in enhancing liquidity and cross-border payment solutions. The stablecoin is set to debut before the end of the year, but institutional investors are cautiously awaiting further regulatory clarity from the SEC before making larger moves into the market.
Another factor boosting confidence in XRP is the recent inclusion of the cryptocurrency on the European version of Robinhood. As one of the largest trading and investment platforms, this is a major achievement for the cryptocurrency because it opens up adoption to the large European market.
Lastly, the launch of the Grayscale XRP Trust itself has reignited hopes that a Spot XRP Exchange-Traded Fund (ETF) could soon follow. While no concrete applications have been made by any investment companies, the creation of the Grayscale XRP trust is seen as a critical first step toward the eventual approval of a Spot XRP ETF.
At the time of writing, the altcoin has been trading at $0.59, which has been up by 1.17% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
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