Grayscale has opened an XRP-based trust for accredited investors

Shares of the Trust are designed to track the market price of XRP with fewer fees and expenses

17.01.2025 - 11:10

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3 min

What’s new? Investment firm Grayscale has opened access to its trust based on the XRP token from fintech company Ripple to accredited investors. The press release notes that this is one of the first investment products to allow access to XRP through securities without having to buy and hold the cryptocurrency directly.

Press release

What else is known? The Trust’s shares are designed to track the market price of XRP minus fees and expenses. The fund relies on data from CoinDesk Ripple Price Index (XRX) from CoinDesk. The index, expressed in US dollars, utilizes real-time prices from multiple trading platforms to provide a representative spot price.

The trust does not charge a fee on profits, but there is a 2,5% management fee. As of January 16, the trust had $16,5 million in assets under management.

Grayscale is one of the largest issuers of exchange-traded crypto products. It managed bitcoin and Ethereum-based trusts for several years, which were converted into spot exchange-traded funds (ETFs) after approval from the US Securities and Exchange Commission (SEC).

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Since the company set the highest management fees in the industry, both products faced outflows of funds. At the time of writing, the bitcoin fund under the GBTC ticker had $21,68 billion, while the Ethereum fund had $3,72 billion.

On a related note, the company has also launched mini-trusts under the BTC and ETH tickers with lower fees, and both are showing positive results. The BTC fund raised $937,68 million and accumulated $3,92 billion worth of coins under management, while the ETH fund raised $565,87 million and $1,54 billion, respectively.

The company also launched options on spot BTC ETFs in November.

Since Grayscale has already converted its crypto trusts into exchange-traded funds in the past, we can expect that the company has similar plans for its XRP trust.