Ripple rallies 4% as Grayscale announces XRP investment fund
- Grayscale Investments, an asset management giant, announces the creation and launch of XRP Trust on Thursday.
- Grayscale’s single-asset investment fund is expected to attract institutional investors and capital to the altcoin.
- XRP gains 4% on the day, having surged more than 10% earlier in the session.
Ripple (XRP) rallied as much as 10% on Thursday following the announcement of a new vehicle for institutional investment. The altcoin corrected and has sustained 4% gains for now. Asset management giant Grayscale announced the creation of a single-asset investment fund for XRP.
XRP trades at $0.5602 at the time of writing.
Daily digest market movers: Grayscale announces XRP Trust
- Grayscale has $26 billion in assets under management as of January 10, 2024. The crypto asset management firm announced the launch of a single-asset investment fund for XRP.
- In the official press release, Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary, says that the asset management giant plans to give investors exposure to a protocol with an important real-world use case.
Grayscale XRP Trust allows investors to gain exposure to $XRP, the token powering the XRP Ledger $XRPL, a distributed, peer-to-peer network created to help cross-border financial transactions.
— Grayscale (@Grayscale) September 12, 2024
Learn more, see important disclosures, or reach out to us: https://t.co/2gq5w3Fbpj pic.twitter.com/RrpdvmCQRl
- Ripple facilitates cross-border payments within seconds through XRP, the native token of the XRP Ledger, and this has the potential to transform legacy financial infrastructure.
- Grayscale’s announcement was met with enthusiasm among XRP traders, and the altcoin peaked at $0.5884, a 10% rally from the September 11 close of $0.5348, early on Thursday.
- Since then XRP price corrected and the altcoin trades at $0.5602, up 4% on the day.
Technical analysis: XRP could extend gains by 7%
XRP has been in a multi-month downward trend since its July 13 top of $0.9380. XRP could extend gains by 6.9% and rally to the lower boundary of the Fair Value Gap (FVG) between $0.6217 and $0.6000. The Moving Average Convergence Divergence (MACD) indicator is a momentum indicator that supports the bullish thesis and the green histogram bars above the neutral line indicate positive underlying momentum in XRP price trend.
XRP/USDT daily chart
If Ripple closes a daily candlestick under September 11 low of $0.5231, it could invalidate the bullish thesis, and XRP could collect liquidity at $0.5000, another key support level that has held steady since July 2024.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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