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Grayscale’s XRP trust has grown significantly since its launch, the development it means good momentum with digital assets. As one of the world’s leading cryptocurrency asset managers, Greyscale’s decision to disclose the initial trust of XRP in the US last week signaled the beginning of an influx of institutional funds into the cryptocurrency. Since its inception, the Grayscale XRP Trust has performed extremely well. The data shows that the value of the trust increased by 11.44%, which is a clear indication of strong demand from institutional investors.
Price of Grayscale XRP Trust Rallies
Grayscale’s XRP trust tracks the price of the altcoin, and investors buy shares of the trust to gain exposure to the cryptocurrency. When we talk about the driving force behind Grayscale’s XRP trust, we look at the Net Asset Value (NAV). NAV is the average value of each share in the trust and is calculated after each business day. A growing NAV is an indicator of the growing investment of the institution in the trust. As such, the increase in NAV is related to bullish sentiment among traders and the spot price of XRP.
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According to the manager websitethe XRP trust’s NAV currently stands at $11.79, which means it has increased slightly more than 11.4% in one week after launch. This amazing rise is not the result of luck but the result of several good developments within the broader XRP ecosystem, working together to demonstrate continued positive momentum.
What is Driving Momentum?
One of the the main drivers behind this impetus is the highly anticipated launch of Ripple’s USD stablecoin, RUSD. The upcoming stablecoin has created a lot of excitement in the cryptocurrency community, as it is expected to play an important role in improving liquidity and cross-border payment solutions. The stablecoin is scheduled to launch before the end of the year, but institutional investors are carefully awaiting further regulatory clarifications from the SEC before making major moves into the market.
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Another thing that boosts confidence in XRP recent installation of cryptocurrency in the European version of Robinhood. As one of the largest platforms for trading and investing, this is a great success for cryptocurrency because it opens up access to a large European market.
Finally, the launch of the Grayscale XRP Trust itself has renewed hopes that a Spot XRP Exchange-Traded Fund (ETF) may soon follow. Although no concrete requests have been made by any investment companies, the creation of the Grayscale XRP trust is seen as an important first step towards the eventual approval of the Spot XRP ETF.
At the time of writing, the altcoin is trading at $0.59, which is up 1.17% in the last 24 hours.
The featured image was created with Dall.E, a chart from Tradingview.com