The XRP world has been abuzz with excitement since the recent conclusion of the SEC-Ripple lawsuit. One of the most notable developments has been the reintroduction of the Grayscale XRP Trust, a product that offers investors a unique way to gain exposure to XRP without directly holding the token. But with so many options available, it can be confusing for investors. What’s the difference between investing in an XRP trust and buying XRP tokens directly? If you’re unsure, don’t worry—Coach JV is here to break it down for you.
Grayscale’s New XRP Trust: What’s the Buzz?
Grayscale recently reintroduced its XRP Trust on September 5, after liquidating the previous one during the SEC-Ripple lawsuit. With the lawsuit now resolved, the new XRP Trust has quickly captured attention within the XRP community, thanks to its impressive performance. As XRP’s market value surges, many investors are left wondering: should they invest in the XRP Trust, or buy the tokens directly? Coach JV, a prominent voice in the XRP community, stepped in to clarify the differences and share his own preference.
Trust vs. Tokens: What’s the Real Difference?
In a recent post on X, Coach JV explained that when investing in the Grayscale XRP Trust, investors don’t actually own XRP tokens. Instead, they gain exposure to XRP’s performance, benefiting from its potential growth without holding the asset themselves. For each share of the Grayscale XRP Trust, investors receive approximately 19.98 XRP. As of now, the trust’s net asset value (NAV) stands at $11.79. When you calculate the NAV per XRP, it comes out to around $0.59, which is nearly the same as buying XRP directly on the open market.
Despite the similarities, Coach JV revealed that he personally prefers buying XRP directly. His reasoning? It’s always good to have control over your own assets.
Grayscale’s Key Advantage
However, Coach JV also highlighted the major advantage of the Grayscale XRP Trust: investors don’t have to worry about securing or safeguarding their assets. Grayscale handles custody and management, making it an attractive option for traditional investors who may not be familiar with managing a crypto portfolio. Of course, this convenience comes with a 2.5% management fee.
Institutional Interest in XRP Trust Grows
Another point Coach JV mentioned is the growing institutional interest in XRP, driven by the trust’s solid performance. As of Thursday, the Grayscale XRP Trust’s assets under management (AUM) reached an impressive $689,602, with a 2.61% boost in its NAV over the past day, now sitting at $11.79. This upward trend signals rising confidence in XRP among institutional investors, leading to increased capital flow into the trust.
Seize the Opportunity
As the crypto market continues to evolve, the Grayscale XRP Trust offers a unique opportunity for investors. With the convenience of professional management and growing institutional interest, it’s worth considering whether this trust fits into your investment strategy. Will you seize the moment?
