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Grayscale has re-added XRP to its Digital Large Cap Fund, one of its largest investment products by AUM, sparking hopes that an XRP ETF product could be introduced in the near future.
The digital asset investment company revealed this. press release Last night. Specifically, the announcement details the quarterly rebalancing of some of Grayscale’s investment products, including Grayscale DeFi Fund, Grayscale Digital Large Cap Fund, and Grayscale Smart Contract Platform Ex-Ethereum Fund.
The Grayscale Digital Large Cap Fund aims to provide investors with exposure to some of the largest crypto assets by market capitalization, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Polygon. (MATIC), Cardano (ADA), and Avalanche (AVAX).
However, in its latest announcement, the company revealed that it has sold some components to raise more Avalanche and XRP tokens as part of its quarterly rebalancing. They then re-added XRP to the fund on behalf of MATIC.
as a result, XRP It currently accounts for 2.54% of the total fund market capitalization, trailing only Bitcoin (69.15%), Ethereum (21.90%), and Solana (3.65%).
The GDLC Fund is Grayscale’s third largest investment product, with total assets under management of $378.4 million.
Grayscale XRP previously removed
Recall that Grayscale already had XRP in its fund before the SEC filed suit against Ripple and its executives.
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Nevertheless, after regulators accused Ripple of engaging in the offering of unregistered securities, XRP witnessed a sharp decline and its market capitalization fell.
In response to the, XRP with grayscale removed Amid the legal battle, funding from the foundation was made on January 4, 2021. The company sold XRP shares and used the proceeds to finance other assets within the fund.
However, following a pivotal July 2023 ruling that declared XRP a non-security, there are growing calls for Grayscale to reintroduce the asset.
It is worth mentioning that these voices were raised when major US-based exchanges such as Coinbase and Kraken relisted XRP. Grayscale acknowledged in a recent announcement that this ruling helped XRP meet the criteria for inclusion in the GDLC fund.
What is the potential of XRP ETF?
Recent developments have caused euphoria among XRP supporters, with some individuals now looking to welcome spot XRP ETFs.
Notably, while major asset managers have focused on Bitcoin and Ethereum as spot ETFs, XRP has been largely ignored despite being the only altcoin with legal clarity in the US. This is what has happened.
Industry commentators are asked a question Why aren’t asset management companies like BlackRock promoting the launch of spot XRP ETFs?
news of Fake BlackRock iShares XRP ETF It surfaced in November last year and led to a sharp rise in the price of XRP. However, the value of the token declined as the product turned out to be fake.
Grayscale previously sponsored the display of Cryptocurrency Watch on CNBC, which included the prices of BTC and ETH in addition to XRP.This made it even more exciting speculation The looming XRP ETF.
Grayscale too liquidated The company discontinued its XRP trust in January 2021 due to the SEC lawsuit. With investment companies reintroducing crypto assets into GDLC funds, market participants are expecting the introduction of XRP ETFs. However, as of this article, the company has not hinted at such a product.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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