The price of XRP is gaining a lot of attention, especially after Grayscale, a well-known crypto asset manager, announced that the firm will launch an XRP Trust.
This investment product could lead to an XRP Exchange-Traded Fund (ETF) in the future, making it easier for investors to invest in the XRP token.
Grayscale Launches An XRP Trust Fund, Paving The Way For Potential ETF
Grayscale announced that it is proud to offer a new single-asset investment fund called the XRP Trust. This fund will be available to accredited investors through private placements. Once the news hit the market, XRP’s price jumped, gaining around 5% and hitting the $0.58 mark. This made it one of the top-performing cryptocurrencies at the time.
However, as with many quick price jumps, some traders cashed out, causing the price to drop about 4%, bringing it back down from the earlier high of $0.56. This kind of price movement is expected in the crypto space, where a pullback often follows quick gains as people lock in profits.
Interestingly, this is not Grayscale’s first rodeo with XRP. They had offered an XRP Trust before but had to shut it down in 2021 when the SEC sued Ripple Labs, accusing them of selling XRP as an unregistered security.
Fast forward to now, and that lawsuit is behind us. With that out of the way, US exchanges have started offering XRP again, and companies like Grayscale are jumping back in with a new XRP product.
XRP Price Prediction: Can It Hit $10 This Cycle?
So, with all this progress, many are asking: could XRP hit $10, especially with the possibility of an ETF coming?
The fundamentals of XRP are improving. With the legal issues settled, there’s a clear path for institutions to start adopting the crypto more widely. If Grayscale’s XRP Trust performs anything like their Bitcoin and Ethereum products, we could see some real momentum behind XRP. Those products were massive hits and were later converted into ETFs, so it’s easy to imagine the hype building for an XRP ETF.
As Grayscale’s XRP Trust gains traction, many believe XRP could be the next major crypto to get ETF approval in the US. It could push XRP’s price even higher if that happens, potentially outperforming other big players like Bitcoin. While Bitcoin might double or triple in price during the current bull market, XRP could see even more significant gains.
But can it really hit $10? That’s the big question. For XRP to reach $10, its market cap would have to jump from $31 billion to around $600 billion. That’s a massive leap, and there are some hurdles to consider. For one, Ripple Labs is still unlocking more XRP supply, which could increase inflation and limit how fast the price grows. On top of that, there’s still some skepticism around whether XRP can achieve the level of adoption it needs to sustain such a high price.
The broader crypto market isn’t helping much in the short term, either. There’s still a lot of uncertainty around the upcoming US Presidential election and concerns about a possible recession. That has kept XRP and many other coins stuck in a multi-month price range.
However, things could change soon. The Federal Reserve is on the verge of starting a new rate-cutting cycle, which could bring more liquidity into the market in the coming years, especially by 2025. This would likely be a big boost for assets like XRP.
For now, XRP has continued to struggle to break above its downward resistance trendline since July 2023, and bulls hope for an upside breakout soon. If that happens, we could see the price head back toward yearly highs near $0.75. Looking further ahead, as the crypto market matures, XRP could potentially double from its current price, hitting $1. So, XRP might be one of the best cryptocurrencies for investors looking for long-term growth.
Final Thoughts
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