Crypto fund manager Grayscale is launching an XRP trust that could pave the way for a spot XRP exchange-traded fund (ETF) in the U.S.

The closed-end fund will offer accredited investors direct exposure to XRP {{XRP}}. Grayscale previously offered an XRP Trust but dissolved it in 2021 following the U.S. Securities and Exchange Commission’s 2020 lawsuit against Ripple Labs that alleged the XRP token is a security under federal securities law.

Ripple has since emerged victorious in a widely-followed court case against the SEC, clearing the regulatory headwinds for the closely related XRP token.

“We believe Grayscale XRP Trust gives investors exposure to a protocol with an important real-world use case,” said Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary in a press release. "By facilitating cross-border payments that take just seconds to complete, XRP can potentially transform the legacy financial infrastructure."

The Trust functions like Grayscale’s other single-asset investment trusts, and is solely invested in the token underpinning the XRP Ledger.

XRP spiked 8% on the news.