Grayscale’s New XRP Trust – Is It Better Than Buying XRP?

What is the difference between an XRP trust and buying XRP by itself? Well, no worries. Coach JV has got our back to clarify the confusion around it. 

Grayscale’s New XRP Trust

Grayscale recently launched a new XRP Trust after the previous one was liquidated due to the SEC-Ripple lawsuit. Following the lawsuit’s recent conclusion, Grayscale reintroduced the XRP investment product on September 5. The performance of the Grayscale XRP Trust since its relaunch has been impressive and has captured the interest of the XRP community.

While the recent surge in XRP’s market value has sparked much interest, many are still unsure whether to invest in an XRP Trust or buy XRP tokens directly. However, Coach JV, a prominent figure in the XRP community, has stepped in to clear up the confusion. Let’s find out what he has to say!

Institutional Interest in XRP Trust: A Sign of Growing Confidence?

In a recent X post, Coach JV explained that when investing in a trust like the Grayscale XRP Trust, investors do not directly acquire the underlying asset, XRP. Instead, they get exposure to the asset’s performance, which helps them benefit from its potential growth without the need to hold the XRP token themselves. 

The coach noted that for the Grayscale XRP Trust, investors receive approximately 19.98 XRP for each share they purchase. Currently, the trust’s net asset value (NAV) stands at $11.79. Notably, when the NAV per XRP is calculated, it yields a value of $0.59, implying that buying and holding XRP through the open market or through the Grayscale XRP Trust costs approximately the same.

However, Coach JV disclosed his preference that given the likeness, he would personally opt to buy XRP directly. 

However, a major advantage of purchasing XRP through the Grayscale Trust is that investors are not responsible for securing and safeguarding their assets. Grayscale handles custody on their behalf, which comes at a cost, where Grayscale charges a 2.5% management fee.

The Grayscale XRP Trust is a great option for traditional investors who may not be able to manage their crypto portfolios themselves. Outsourcing custody and management to Grayscale allows these investors to gain exposure to XRP without having to deal with the complexities associated with it. 

Institutional Interest in XRP Trust Grows 

Coach JV also noted Grayscale’s XRP Trust’s robust performance, which has been attracting significant institutional interest in XRP. The trust’s assets under management (AUM), has reached an impressive $689,602 as of Thursday. Also, the trust’s net asset value has seen a substantial boost, rising to $11.79, which marks a 2.61% increase over the past day.

The upward trend reflects a growing confidence among institutional investors in XRP’s potential, leading to increased capital allocation to the trust.

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