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XRP Price Soars 10% Amid Gensler Probe, Grayscale’s Ripple Trust

Grayscale Investments has unveiled and launched the Grayscale XRP Trust today, that led to the XRP price rocketing.
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XRP Price Soars 10% Amid Gensler Probe, Grayscale’s Ripple Trust
Grayscale Investments has unveiled and launched the Grayscale XRP Trust today, that led to the XRP price rocketing.

This new trust allows investors to access XRP, the digital token used by the XRP Ledger—a decentralized, peer-to-peer network designed to enable international financial transactions.

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Grayscale Launches XRP Trust, Boosting Token’s Price by Nearly 10%

Crypto asset management firm Grayscale Investments announced the launch of the Grayscale XRP Trust, which contributed to a nearly 10% increase in the XRP price, the seventh-largest cryptocurrency by market capitalization.

Grayscale’s new trust offers investors, both individual and institutional, who meet accreditation criteria, the chance to invest in XRP.

This token powers the XRP Ledger, a decentralized network designed for international financial exchanges, according to Grayscale’s statement. Ripple has also recently unveiled significant advancements aimed at enhancing crypto infrastructure, driving greater institutional adoption of its blockchain technology.

Unlike exchange-traded funds, which can have a fluctuating number of shares, trusts like this are closed-end, limiting the number of shares to a fixed amount, making them less liquid. Following the announcement, XRP’s price surged by up to 9.8%, reaching approximately 59 cents, though it remains down about 8% for the year. Currently, XRP’s market valuation stands at about $32 billion and the time of writing XRP price was still rocketing by 6.34%.

Recently, the company’s investment vehicles focused on digital currencies, especially Grayscale’s Ethereum and Bitcoin exchange-traded funds (ETFs), have experienced a significant decrease in assets. Recent figures indicate that Grayscale’s total holdings have dropped below $20 billion.

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Grayscale’s XRP Trust Validates Utility and Spurs Market Growth

As XRP facilitates quick and efficient cross-border financial transactions, its integration into a trust by Grayscale could further validate its utility and foster broader adoption. The trust not only highlights the growing acceptance of cryptocurrencies as legitimate investment vehicles but also enhances the credibility of XRP within international financial operations.

The market response has been undeniably positive, with XRP price witnessing a significant uptick following the trust’s launch. Despite a year-on-year decrease, the continued interest and climbing price post-launch suggest a robust confidence among investors. This scenario is a testament to the ongoing maturation of the cryptocurrency market, where traditional financial mechanisms like investment trusts are increasingly melding with digital asset innovations.

In summary, the Grayscale XRP Trust launch is a landmark event that not only elevates Grayscale’s position in the crypto investment sphere but also potentially sets the stage for the next phase of growth for XRP price. As the landscape evolves, such innovations are likely to play a crucial role in shaping the future of cryptocurrency investments, highlighting the dynamic interplay between traditional finance and digital asset management.

Speculation is growing that SEC Chair Gary Gensler’s recent probe into various aspects of the cryptocurrency market could be indirectly benefiting the XRP community. Many supporters are optimistic, perceiving these regulatory actions as a sign of increasing clarity and legitimacy for the sector, which may pave the way for broader acceptance of XRP. This belief is bolstered by the thought that definitive regulatory guidelines could help stabilize the market and enhance investor confidence, potentially leading to increased adoption and investment in XRP.

In a recent turn of events in the XRP lawsuit, Ripple has requested a stay order from the court regarding the $125 million payment due to the US SEC, just days before the deadline. This request follows Judge Analisa Torres’ order last month mandating the payment. Currently, both Ripple and the SEC have agreed to pause the payment as they gear up for a possible appeal.

Previously, Ripple had stated it had no plans to appeal, and CEO Brad Garlinghouse expressed doubts about the SEC pursuing an appeal. However, former SEC lawyers had anticipated that the agency might appeal before the 60-day deadline.

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Teuta Franjkovic

Teuta is a seasoned writer and editor with over 15 years of expertise in macroeconomics, technology, and the crypto and blockchain sectors. She began her career in 2005 as a lifestyle writer for *Cosmopolitan* before transitioning to business and economic reporting for renowned outlets like *Forbes* and *Bloomberg*. Inspired by thought leaders like Don and Alex Tapscott and Laura Shin, Teuta embraced blockchain's potential, viewing cryptocurrency as one of humanity's most transformative innovations. Since 2014, she has specialized in fintech, focusing on crypto, blockchain, NFTs, and Web3. Known for her strong collaboration and communication skills, Teuta also holds dual MAs in Political Science and Law.

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