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Ripple and XRP
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September 13, 2024

Crypto Asset Management Giant Grayscale Launches New XRP Trust After Axing Product in 2021

By Conor Devitt

The crypto asset management giant Grayscale launched a new XRP Trust after axing a similar product in 2021.

The new trust is solely invested in XRP and offers investors a chance at exposure to “a protocol with an important real-world use case,” says Rayhaneh Sharif-Askary, Grayscale’s head of product & research.

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“By facilitating cross-border payments that take just seconds to complete, XRP has the potential to transform the legacy financial infrastructure.” 

Grayscale previously offered an XRP Trust but dissolved it in early 2021 after the U.S. Securities and Exchange Commission (SEC) launched a lawsuit against Ripple accusing the payments firm of selling the asset as an unregistered security.

After a prolonged legal battle, District Judge Analisa Torres ruled last year that Ripple’s automated, open-market sales of XRP did not constitute security offerings, contrary to what the SEC alleged.

The judge did, however, side with the SEC’s claim that Ripple’s sales of XRP directly to institutional buyers were securities offerings.

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In an order filed last month, Torres imposed a $125 million civil penalty against the San Francisco-based firm related to those institutional sales.

XRP is trading at $0.562 at time of writing. The 7th-ranked crypto asset by market cap is up more than 5% in the past 24 hours.

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