Coin Edition -
- Crypto asset manager Grayscale has re-added XRP to its Digital Large Cap Fund.
- XRP now holds 2.54% of the GDLC’s valuation, making it the fourth-largest component.
- While speculation exists about an XRP ETF, Grayscale has not officially hinted at such a product.
Grayscale, a prominent U.S. digital asset investment firm, has re-added XRP to its Digital Large Cap Fund, a significant move that hints at potential plans for an XRP ETF.
The digital asset investment firm made this disclosure through a press release yesterday. The announcement notably outlined the quarterly rebalancing of several Grayscale investment products. Specifically, the firm noted acquiring more Avalanche (AVAX) tokens and reintroducing XRP to the fund.
Following the rebalancing, XRP now holds 2.54% of the Digital Large Cap Fund’s market cap. This makes it the fourth-largest component after Bitcoin, Ethereum, and Solana. The fund, with $378.4 million in assets under management, is Grayscale’s third-largest investment product.
The decision to include XRP comes after its removal in January 2021 due to the SEC’s lawsuit against Ripple. Following a pivotal ruling in July 2023 declaring XRP a non-security, calls intensified for XRP reintroduction, which the asset manager has now undertaken. Grayscale’s recent move aligns with major U.S. exchanges like Coinbase (NASDAQ:COIN) and Kraken that relisted XRP after the court ruling.
Prominent figures in the XRP community have welcomed the development, expressing confidence in their investment choice of XRP.
Great that you noticed this. I am really happy to see #XRP and #AVAX added by Grayscale to its digital large cap fund. I feel good about diversifying my own portfolio by buying AVAX later last year instead of more XRP and then buying more XRP when it dipped in the last couple of… https://t.co/wNsSXXBiO9— bill morgan (@Belisarius2020) January 5, 2024
While Bitcoin and Ethereum have seen interest in spot ETFs, XRP, the only altcoin with legal clarity in the U.S., has been largely overlooked. Questions arise about why asset management firms like BlackRock have not pursued a spot XRP ETF. Speculation surged last November with news of a fake BlackRock iShares XRP ETF, contributing to a temporary rise in XRP’s value.
Market watchers now anticipate an XRP ETF following Grayscale’s reintroduction of XRP to the GDLC Fund. Despite the previous liquidation of the XRP Trust in January 2021, Grayscale has not officially hinted at such a product at the time of reporting.
The post Grayscale Reintroduces XRP to GDLC, Fueling XRP ETF Speculation appeared first on Coin Edition.