Confidence in Grayscale’s XRP has grown noticeably since its launch, a development that means positive momentum for digital assets. As one of the world’s leading cryptocurrency asset managers, Grayscale’s decision to reveal The first XRP trust in the US last week signaled the beginning of an institutional influx of funds into the cryptocurrency. Since its debut, the Grayscale XRP Trust has performed remarkably well. Data indicates that the value of the trust has increased by 11.44%, a clear indication of strong demand from institutional investors.
Grayscale XRP Confidence Rallies Value
Grayscale’s XRP trust tracks the price of the altcoin, and investors buy shares in the trust to gain exposure to the cryptocurrency. When talking about the momentum behind Grayscale’s XRP trust, we are looking at its net asset value (NAV). NAV is a measure of the value of each share in the trust and is calculated after each trading day. A rising NAV is an indicator of increased institutional investment in the trust. As such, an increase in NAV is correlated with bullish sentiment among traders and the spot price of XRP.
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According to the manager websiteThe NAV of the XRP trust is currently at $11.79, which translates to an increase of slightly over 11.4% in just one week after launch. This impressive increase is not a result of chance, but rather the result of several positive developments within the broader XRP ecosystem, which work together to signal continued positive momentum.
What is driving the momentum?
One of the main drivers behind This bullish momentum is the highly anticipated launch of Ripple’s dollar-pegged stablecoin, RUSD. The upcoming stablecoin has generated considerable excitement in the crypto community as it is expected to play a key role in increasing liquidity and cross-border payment solutions. The stablecoin is expected to debut before the end of the year, but institutional investors are cautiously awaiting more regulatory clarity from the SEC before making any bigger moves into the market.
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Another factor that increases confidence in XRP is the recent inclusion of cryptocurrency on the European version of Robinhood. As one of the largest trading and investment platforms, this is a huge achievement for cryptocurrency because it opens up adoption to the larger European market.
Lastly, the launch of the Grayscale XRP Trust itself has rekindled hopes that a Spot XRP exchange-traded fund (ETF) could emerge soon. While no concrete application has been made by any investment firm, the creation of the Grayscale XRP trust is seen as a critical first step towards the eventual approval of a Spot XRP ETF.
At the time of writing, the altcoin is trading at $0.59, up 1.17% in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com