Grayscale XRP Trust ETF

Grayscale Investments, a subsidiary of Digital Currency Group, sponsors the trust. Grayscale is the largest digital currency asset manager globally, with over $50B in assets under management across its product suite. The firm is based in Stamford, Connecticut.

The trust charges an annual sponsor fee of 2.5% of net asset value, consistent with Grayscale's other single-asset trusts. This fee covers custody via Coinbase Custody Trust Company and operational expenses. The fee is deducted from the trust's assets daily.

Trust shares trade on over-the-counter markets through traditional brokerage accounts, eliminating the need for cryptocurrency wallets or exchange accounts. Investors pay the sponsor fee instead of trading or custody costs. The trust's share price may trade at a premium or discount to NAV, unlike direct XRP holdings.

Shares are offered to accredited investors through private placements, with subsequent trading on OTC markets accessible to all investors via brokerage accounts. The trust structure limits initial access but provides secondary market liquidity for shares already held.

Coinbase Custody Trust Company holds the XRP tokens on behalf of the trust, providing cold storage and insurance coverage. Custody is regulated under New York banking law, offering institutional-grade security. The trust's assets are audited regularly to ensure accuracy.

The trust's name includes "ETF" suggesting an intention to convert, as Grayscale has done with its Bitcoin and Ethereum trusts. Conversion requires SEC approval of a rule change, which remains uncertain. An ETF would enable arbitrage mechanisms to eliminate the premium/discount.

The trust tracks XRP, the native token of the XRP Ledger, used for cross-border payments and remittances. XRP's market capitalization ranks it among the top digital assets by value. The trust holds no other cryptocurrencies or assets.