Grayscale’s confidence in XRP has increased noticeably since its launch, a development that means positive momentum for the digital resource. As one of the world’s leading crypto asset managers, Grayscale decision to unveil The first XRP fund in the US last week signaled the beginning of institutional inflows into the cryptocurrency. Since its debut, the Grayscale XRP Trust has performed remarkably well. Data shows the fund is up 11.44% in value, a clear sign of robust demand from institutional investors.

Grayscale XRP Rallies Trust Value

Grayscale’s XRP trust tracks the price of the altcoin, with investors buying shares in the trust to gain exposure to the cryptocurrency. When we talk about the momentum building around Grayscale’s XRP trust, we’re referring to its net asset value (NAV). NAV is a measure of the value of each share in the trust and is calculated after each business day. A rising NAV is an indicator of increased institutional investment in the trust. As such, an raise in NAV relates to bullish sentiment among traders and the spot price of XRP.

According to the manager websiteThe NAV for the XRP fund currently stands at $11.79, up just over 11.4% in just one week since launch. This impressive growth is not a coincidence, but rather the result of some positive changes within the broader XRP ecosystem, which work together to signal a continuation of the positive trend.

What is driving this trend?

One of main driving factors this bullish momentum is the anticipated launch of Ripple’s USD stablecoin, RUSD. The upcoming stablecoin has generated a lot of excitement in the cryptocurrency community as it is expected to play a key role in increasing liquidity and cross-border payment solutions. The stablecoin is scheduled to debut before the end of the year, but institutional investors are cautiously awaiting further regulatory clarification from the SEC before making any major moves into the market.

Another factor increasing trust in XRP this is the last inclusion cryptocurrencies on the European version of Robinhood. As one of the largest trading and investment platforms, this is a major achievement for cryptocurrency as it opens up adoption in the immense European market.

Finally, the launch of the Grayscale XRP Trust itself has reignited hopes that a Spot XRP Exchange-Traded Fund (ETF) could soon follow. While no specific applications have been filed by any investment firm, the creation of the Grayscale XRP Trust is seen as a key first step toward the eventual approval of a Spot XRP ETF.

At the time of writing, the altcoin was trading at $0.59, up 1.17% over the last 24 hours.

Featured image created with Dall.E, chart from Tradingview.com