In a recent announcement on January 5, Grayscale Investments, a prominent U.S. digital asset management firm, disclosed strategic changes in its Digital Large Cap Fund (GDLC).
The move involved the reintroduction of XRP, Ripple’s native cryptocurrency, to the fund, marking a significant shift since its removal in January 2021 amid the SEC’s legal actions against Ripple.
Grayscale’s quarterly rebalancing also saw an increased exposure to Avalanche (AVAX) tokens, further diversifying its investment portfolios. Notably, XRP now holds a 2.54% share of GDLC’s market capitalization, securing its position as the fourth-largest holding, trailing behind Bitcoin, Ethereum, and Solana.
XRP’s Journey from SEC Scrutiny to Grayscale’s Portfolio
The decision to reintegrate XRP into GDLC has sparked renewed speculation about the potential launch of an XRP Exchange-Traded Fund (ETF), indicating possible market movements. This move follows a crucial court ruling in July 2023 that categorized XRP as a non-security, paving the way for its reconsideration in investment portfolios.
Great that you noticed this. I am really happy to see #XRP and #AVAX added by Grayscale to its digital large cap fund. I feel good about diversifying my own portfolio by buying AVAX later last year instead of more XRP and then buying more XRP when it dipped in the last couple of… https://t.co/wNsSXXBiO9
— bill morgan (@Belisarius2020) January 5, 2024
Grayscale’s strategic move has garnered enthusiasm within the XRP community, seen as a pivotal step toward legitimizing the token’s status and reinstating it within prominent investment portfolios. The crypto community now awaits further developments, closely monitoring potential hints or official announcements regarding the launch of an XRP ETF.
Despite Bitcoin and Ethereum dominating discussions around spot ETFs, XRP stands out as the only altcoin with a clear legal standing in the U.S. Yet, questions arise about why established asset management firms, including BlackRock, have not pursued the idea of an XRP ETF, given the clarity surrounding its regulatory status.
However, Grayscale has not officially hinted at such a launch, leaving market observers and XRP enthusiasts eagerly anticipating further developments that could potentially reshape the cryptocurrency investment landscape.