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XRP (XRP) price predictions are becoming increasingly optimistic following an announcement from crypto asset manager Grayscale regarding the launch of an XRP Trust investment product, which may eventually transition into an XRP ETF.
We are excited to announce the establishment of a new single-asset crypto investment fund, Grayscale $XRP Trust, which will be accessible through private placement.
Available to qualified accredited investors.
Read the press release: https://t.co/rOmVPUSFxZ pic.twitter.com/WEhk849RmT— Grayscale (@Grayscale) September 12, 2024
The XRP price subsequently surged, with a reported increase of 5% on Thursday, hovering around the $56 mark, according to TradingView.
This positions it as one of the top-performing major cryptocurrencies today.
However, profit-taking has led to a decline in the XRP price of over 4% from earlier session peaks near $0.59.
This is not the first instance of Grayscale providing an XRP Trust investment product.
The digital asset manager previously had to discontinue their earlier trust in 2021 due to the SEC’s lawsuit against Ripple Labs, which alleged that the company was selling XRP as an unregistered security.
However, that lawsuit has now concluded, with Ripple settling for $200 million with the SEC earlier this year.
Regulatory clarity concerning XRP has paved the way for US exchanges to resume offering the asset, as well as for firms like Grayscale to introduce new XRP products.
It is therefore not surprising that XRP price forecasts have turned significantly more positive.
XRP Price Forecast – What’s Next for XRP?
The fundamentals for XRP are strengthening. The Ripple/SEC settlement earlier this year has facilitated increased institutional adoption of the cryptocurrency.
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An XRP Trust product from the leading crypto asset manager Grayscale is likely to further accelerate this adoption.
Similar investment offerings from Grayscale for Bitcoin and Ethereum have been highly successful over the years, with both converting to ETFs this year.
Nonetheless, XRP continues to be hindered by a lack of confidence in the broader cryptocurrency market.
Uncertainty surrounding the US Presidential election, along with concerns about a potential recession, has impacted the market in recent weeks.
Most major cryptocurrencies, including XRP, remain confined within multi-month trading ranges.
However, the Federal Reserve is on the verge of initiating a new rate-cutting cycle. Thus, even if the short-term outlook appears challenging, improved liquidity conditions in 2025 and beyond should provide significant support for crypto assets like XRP.
Current market expectations for Fed rate cuts…
-Sep 18, 2024: 25 bps cut to 5.00-5.25%
-Nov 7, 2024: 50 bps cut to 4.50-4.75%
-Dec 18, 2024: 25 bps cut to 4.25-4.50%
-Jan 25, 2025: 50 bps cut to 3.75-4.00%
-Mar 19, 2025: 25 bps cut to 3.50-3.75%
https://t.co/l5IYmkf6Ih pic.twitter.com/Y2wZRHE4r5— Charlie Bilello (@charliebilello) September 12, 2024
Currently, the XRP price remains trapped within a medium-term pennant formation.
Bulls are hoping for a near-term breakout that would allow for a retest of yearly highs around $0.75.
Ultimately, XRP could potentially double from its current levels and return to $1 as the cryptocurrency bull market develops in the upcoming years.
However, due to a relatively weaker adoption narrative compared to Bitcoin and Ethereum, it may lag behind other major cryptocurrencies.
Consequently, it may not be the most favorable cryptocurrency to purchase at this time.
The post XRP Price Forecast: Grayscale to Launch XRP Trust appeared first on Cryptonews.
