Photo credit: www.cnbc.com
The Ripple cryptocurrency, represented by its XRP token, saw a significant price increase on Thursday following the announcement from Grayscale regarding a new trust aimed at providing accredited investors with direct access to this digital asset.
XRP’s value surged by over 4.7% to reach approximately 56 cents per token, as reported by Coin Metrics. At its peak during the day, it had risen by as much as 9%. As the native cryptocurrency of Ripple’s XRP Ledger, XRP is designed primarily to enhance cross-border financial transactions. Currently, it ranks as the fifth-largest cryptocurrency by market capitalization, excluding stablecoins like Tether (USDT) and USDC.
Distinct from an exchange-traded fund (ETF), the new Grayscale trust is expected to trade mainly over-the-counter. This structure can lead to fluctuations where the trading price diverges from the intrinsic value of the underlying assets.
Rayhaneh Sharif-Askary, Grayscale’s head of product and research, articulated the firm’s vision, stating, “As crypto investors diversify beyond Bitcoin and Ethereum, we believe in providing exposure to protocols that solve real-world problems. XRP can reduce frictions in international payments, enabling greater efficiency in an evolving global economy.”
Last summer, Ripple achieved a partial legal victory in its protracted dispute with the U.S. Securities and Exchange Commission (SEC), a decision that was celebrated as pivotal for the broader cryptocurrency sector. U.S. District Judge Analisa Torres ruled that XRP does not qualify as a security when sold to retail investors on exchanges, but does classify as an unregistered security when marketed to institutional investors.
Grayscale’s progress was further highlighted when a court found against the SEC’s earlier refusal to allow the firm to convert its well-known Bitcoin trust into an ETF, leading to an approval of the required regulatory changes in January. The Grayscale Bitcoin Trust and Grayscale Ethereum Trust began trading as ETFs in January and July of this year, respectively.
On the broader market front, major cryptocurrencies remained stable on Thursday, with Bitcoin trading at approximately $58,388 and Ethereum at $2,347.48. Additionally, MicroStrategy’s stock showed minimal change, while Coinbase experienced a 2% increase.
Don’t miss these cryptocurrency insights from CNBC PRO:
Source
www.cnbc.com