XRP community figures have begun speculating about the re-inclusion of XRP in Grayscale funds following its victory against the SEC and Ripple’s earlier victory.
The U.S. Securities and Exchange Commission (SEC) is facing resistance to its onslaught on the crypto industry. The regulator recently recorded its second significant loss to a digital asset-focused company shortly after partially losing to Ripple last month.
Grayscale’s Victory
Notably, Grayscale Investments, a digital asset investment firm, won its lawsuit against the SEC. It accused the securities regulator of acting arbitrarily by rejecting its application to convert the Grayscale Bitcoin Trust to a spot-based exchange-traded product.
In its lawsuit, filed last June, Grayscale argued that the SEC has no tangible reason to keep rejecting spot-based BTC ETF applications, all while accepting futures-based ETFs for Bitcoin. The court agreed to this argument.
Following the victory secured by Grayscale yesterday, speculations have emerged on the implications to the crypto scene. Most pundits believe it boosts the crypto market’s chances of finally seeing a spot-based BTC ETF.
Time to Resume XRP Support?
However, some XRP community figures also believe this victory should motivate Grayscale to re-include XRP to its funds. Riz, an XRP community member, is one such individual.
@BarrySilbert Victory for $GBTC
Congratulation.. ?
When the return of #XRP on @Grayscale Digital Large Cap?
It's time.. A level Playing Field.. https://t.co/QrKDYaxzsh
— RIZ.XRP ☀️ (@RizXRP) August 29, 2023
Notably, Grayscale delisted XRP from its Digital Large Cap fund in January 2021, shortly after the SEC contested that XRP is an unregistered security. Grayscale removed the asset, sold off its holdings, and used the proceeds to purchase other assets in the fund.
Shortly after taking off XRP from the Digital Large Cap fund, Grayscale began dissolving its standalone XRP Trust in the same month. The firm cited the SEC’s lawsuit against Ripple.
According to Grayscale, due to the lawsuit, it would become difficult for the Trust to exchange XRP for the dollar. This is because numerous U.S.-based exchanges, such as Coinbase and Kraken, had delisted XRP.
Now that the SEC’s lawsuit against Ripple has ended with the court ruling that XRP is not an unregistered security, these exchanges have relisted the asset. However, Grayscale has not indicated any interest in re-including XRP in its Large Cap fund or reinstating the XRP Trust.
Community figures such as Riz believe the company has no reason not to resume support for XRP. Its recent victory against the SEC could serve as a major motivation. “When is the return of XRP on Grayscale Digital Large Cap? It’s time.. A level Playing Field,” Riz remarked.
Resuming support for XRP would take the asset one step forward in reclaiming its status before the lawsuit occurred. Trading volume for XRP is already seeing a significant uptick, similar to what the markets observed pre-lawsuit.
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