Ripple CEO Brad Garlinghouse has responded positively to Grayscale Investments’ recent launch of an XRP Trust, giving accredited investors direct exposure to the token. Grayscale, a leading crypto asset manager, introduced the first U.S. XRP Trust, a closed-end fund exclusively holding XRP. Additionally, Grayscale plans to convert the trust into a spot ETF in the future.
Garlinghouse’s Reaction to Grayscale’s XRP Trust
Garlinghouse expressed surprise and optimism in response to Grayscale’s move. He shared his reaction in a tweet, stating he was initially shocked by the development. However, he added that this advancement aligns with his expectations for XRP, particularly as the token has gained regulatory clarity in the U.S. and other countries.
Garlinghouse believes this clarity sets the stage for XRP’s further expansion. In his view, Grayscale’s introduction of the XRP Trust signals the start of widespread adoption and growth for XRP and its ecosystem.
“I expect it’s only a matter of time for this space [XRP] to grow,” Garlinghouse said. XRP has experienced increased adoption among both retail and institutional investors following a New York federal court’s ruling in favor of Ripple.
Related article: Ripple CEO Foresees Resolution in Long-Running SEC Dispute
Last year, U.S. District Judge Analisa Torres ruled that XRP is not inherently a security, which contradicted the SEC’s allegations. This ruling led to U.S.-based exchanges like Coinbase, Kraken, and Binance.US relisting XRP.
Grayscale’s XRP Trust and Potential Spot ETF
Grayscale’s XRP Trust aims to provide accredited investors with direct exposure to the token. The firm also plans to eventually convert the trust into a spot-based ETF, as it did with its Bitcoin and Ethereum Trusts.
Related article: Ripple CEO and President to Highlight XRP Ledger Progress at Tokyo Event
While Grayscale converted its Bitcoin and Ethereum Trusts to ETFs earlier this year, launching an XRP ETF could face hurdles due to the ongoing legal battle between the SEC and Ripple. The legal dispute recently reached a verdict at the district court level. However, if either party appeals, the case could extend into 2025 or 2026.
An appeal could delay the potential approval of an XRP ETF, but if no appeal is filed, the conclusion of the lawsuit could increase the likelihood of the ETF’s approval.
