Key Points:
– Grayscale Investments has reintegrated XRP into its Grayscale Digital Large Cap Fund (GDLC) following its latest quarterly rebalancing.
– The GDLC Fund, Grayscale’s third-largest investment product, now includes XRP, giving it a 2.54% share within the fund.
– XRP was previously removed from the GDLC Fund in early 2021 following the SEC’s legal actions against Ripple.
– The reintroduction of XRP has sparked speculation in the market about the potential launch of a dedicated XRP ETF.
Yello Paradisers! Grayscale Investments has rejuvenated Ripple’s XRP in its Grayscale Digital Large Cap Fund (GDLC), stirring market excitement. This inclusion comes after the latest quarterly rebalancing, where Grayscale adjusted its portfolio to re-integrate XRP, replacing Polygon (MATIC) in the process. XRP now holds a 2.54% share in the fund, ranking it just below Bitcoin, Ethereum, and Solana in terms of fund allocation.
GDLC Fund – A Key Player in Grayscale’s Portfolio
Grayscale’s GDLC Fund, with a substantial $378.4 million in assets under management, is the firm’s third-largest investment product. Designed to offer exposure to top cryptocurrencies by market cap, the fund’s rebalancing has put XRP back on the investment radar.
Background: XRP’s Rocky Journey with Grayscale
In the wake of the SEC’s legal action against Ripple in late 2020, Grayscale had removed XRP from the GDLC Fund in early 2021, amid market uncertainty and regulatory scrutiny. This move followed widespread selloffs and a notable drop in XRP’s market cap. However, the landscape shifted with a pivotal ruling in mid-2023, reclassifying XRP as a non-security, leading to renewed interest and relisting on major U.S. exchanges.
XRP ETF Speculation Intensifies
This latest development has catalyzed speculation among XRP enthusiasts about the potential launch of a dedicated XRP ETF. Despite XRP’s legal clarity in the U.S., major asset managers have predominantly focused on Bitcoin and Ethereum for their ETF proposals. The reintroduction of XRP into Grayscale’s significant fund has prompted questions about the feasibility and likelihood of an XRP-based ETF in the near future.
Market Impact and Future Prospects
Grayscale’s decision to reintegrate XRP into its GDLC Fund marks a significant turn in the asset’s journey and could pave the way for broader institutional acceptance and investment products centered around XRP. With the ongoing developments in the crypto ETF space, industry watchers remain keenly observant for any signs of Grayscale hinting at an XRP ETF in the pipeline.
As the narrative unfolds, Ripple’s XRP stands at a pivotal juncture, potentially influencing the trajectory of cryptocurrency investment strategies and products.
