• Tue. Feb 27th, 2024

XRP Returns to GDLC, Speculates for an XRP ETF Rise

Maria Bartiromo

ByMaria Bartiromo

Jan 8, 2024

The re-entry of XRP into the Grayscale Digital Large Cap Fund (GDLC) has sparked speculation about the potential creation of an XRP exchange-traded fund (ETF), which has been described as a major move for the cryptocurrency industry.

The GDLC Fund has again embraced XRP, highlighting the token’s renewed strategic significance in the digital asset ecosystem. The Grayscale Digital Large Cap Fund participation has exposed investors to various large-cap digital assets. 

The native digital currency of the Ripple network, XRP, has had a turbulent ride lately due to regulatory issues that resulted in its temporary exclusion from the GDLC Fund. Its reappearance in the fund signals a turning point for the cryptocurrency and raises questions about the possibility of an XRP ETF.

XRP Speaks Says it Still Has Many Legal Issues Ahead

Despite the regulatory issues surrounding it, the fund’s incorporation of XRP and other prominent cryptocurrencies solidifies its status as a major participant in the digital asset industry. The action has sparked conjecture among cryptocurrency enthusiasts regarding the potential creation of an XRP ETF.

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Exchange-traded funds (ETFs) have been associated with the growing investor base. Contrary to popular belief that the XRP is free of legal hitches after its last victory against the SEC, the company says there are more legal hurdles ahead of them, which is very much uncertain.

The growing competition among major altcoins and future market manipulation has been considered a major concern by traders.  The GDLC funds Assets Under Management (AUM) at $378.4 million as of press time. The XRP currently holds a 2.44% stake, termed a strategic investment. A potential Grayscale XRP ETF has been described as a backwards-moving flood holding back institutional capital.

Investigation Shows Major Exchangers are giving XRP the benefit of the doubt

The deliberate reintroduction of XRP into the GDLC Fund raises the possibility that institutional perceptions of XRP are changing. For exposure to a diverse portfolio of digital assets, institutions, and investors frequently turn to  GDLC funds; the addition of XRP signifies a revitalized belief in the token’s future.

Creating cryptocurrency-based financial instruments, like Exchange Traded Funds (ETFs), depends heavily on regulatory certainty. The introduction of Bitcoin futures ETFs in several countries, among other recent events, has raised hopes that digital assets would be more widely accepted in traditional financial markets.

Recent observation has shown that, unlike the situation in 2021, when the SEC controls Ripple’s decisions using lawsuits – the July 2023 court decision that defined the XRP as a non-security has been considered a major game changer. Investigations show that Kraken, Grayscale, and Coinbase reluctantly come to give them the benefit of the doubt, hence, a vote of confidence.

Expert Comments, Says Legal Clarity Con Change XRP

According to an analysis by Adedoyin Aka on the Time Tabloid platform, the standing legal clarity given to the XRP can transform it into an institutional investor’s magnet looking for exposure beyond Ethereum and Bitcoin.

This scenario is believed to increase the amount of liquidity in the market, which will, in turn, make the XRP trading much more efficient for traders Aka wrote that the easy familiarity with the ETF can be the solution to the wide adoption of XRP. The latest move by Grayscale amid unofficial confirmation has ignited a possible introduction of an XRP ETF – which has further proved the increasing XRP influence.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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