Grayscale’s XRP Trust Is Ending the Year on a Bullish Note, Following XRP's Late Rally

XRP is ending the year on a bullish note, significantly affecting Grayscale's XRP Trust, which the investment firm relaunched in September.

As 2024 draws to a close, XRP is making significant waves, particularly in the context of Grayscale’s XRP Trust, which the investment firm re-launched in September. According to reports, the Trust is set to end the year with over 300% growth, largely attributed to XRP’s late rally amid shifting dynamics in the cryptocurrency ecosystem.

Crucially, recent developments pertaining to crypto regulation and the political landscape have worked in XRP’s favor, especially towards the end of the year. Donald Trump’s pledge to support the crypto industry and his victory in the U.S. presidential election have both contributed to XRP’s bullish momentum, building on its partial victory in a 2023 court judgment.

This bullish sentiment towards XRP has extended to products tied to the crypto asset, including Grayscale’s XRP Trust. The shares of the Trust, which were priced at $10.85 during the September re-launch, reached $45.46 in December. Several analysts have noted that Trump’s victory in the elections and his support for the crypto community have played a role in boosting XRP’s adoption among investors, leading to its recent bull run.

Meanwhile, many XRP supporters believe that the regulatory clouds surrounding the crypto asset are clearing up. This phenomenon could instill positive sentiment among investors, increasing speculation that XRP may secure a spot ETF soon. Achieving a spot ETF would pave the way for institutional funds and further boost XRP’s adoption.

Interestingly, some ETF analysts view Grayscale XRP Trust as a catalyst for accelerating an ETF approval for the crypto asset. Several asset managers, including Canary Capital and Bitwise, have already filed for spot XRP ETFs. If approved, it would allow institutional participation in XRP, potentially boosting demand for the cryptocurrency.

To put things in perspective, a similar occurrence was witnessed with Bitcoin in January of this year. After the SEC approved multiple spot Bitcoin ETFs, there was a massive increase in demand for the crypto asset. Furthermore, with the entry of institutional investors, Bitcoin’s demand increased, leading to a price rally of over 180% in less than 12 months.

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