Grayscale Adds XRP to Its GDLC Fund – Is the XRP ETF Next?

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After a strong finish to 2023, XRP price is expected to rise in 2024, and Grayscale may add to this momentum. The world’s largest digital asset manager has announced a rebalancing of its Large-Cap Digital Fund (GDLC), with important additions and deletions to the crypto giant.

Grayscale adds XRP

Grayscale, two in one announcement On Friday, it announced that it would remove Polygon (MATIC) and add XRP and Avalanche (AVAX) to its GDLC.

After the court ruling, major digital asset exchanges announced that they would list XRP again, and XRP subsequently met the listing standards of the DLCS index.

Therefore, the GLDC index is adjusted to hold these large-cap assets, with the corresponding weights as follows:

Bitcoin (BTC) – 69.15%
Ethereum (ETH) – 21.9%
Solana (SOL) – 3.65%
Ripple – 2.54%
Cardano (ADA) – 1.62%
Avalanche (AVAX) – 1.14%

While this decision is a positive development for altcoins, the price of the digital asset is yet to react due to the bearish sentiment currently present in the cryptocurrency market.

Will there be an XRP ETF?

Recent developments have stoked excitement among XRP supporters, with some now hoping to welcome an XRP spot ETF.

Notably, while top asset managers have been eyeing spot ETFs for Bitcoin and Ethereum, XRP has been largely ignored despite being the only U.S. altcoin with clear regulations.

Industry commentators have questioned why asset managers like BlackRock are not pushing for the launch of a spot XRP ETF.

News of the fake BlackRock iShares XRP ETF emerged last November, causing XRP prices to surge. However, the token fell in value following the BlackRock correction.

Grayscale previously sponsored a Cryptocurrency Watch presentation on CNBC regarding BTC and ETH prices, as well as XRP. This further fuels speculation about an upcoming XRP ETF.

Recall that Grayscale also liquidated the XRP trust in January 2021 following a lawsuit filed by the SEC. Now that the investment firm has reintroduced the crypto asset to GDLC, market observers are predicting the introduction of an XRP ETF. However, as of press time, the company has not yet hinted at the launch of such a product.

XRP price continues to fall

XRP price is currently trading at $0.55 after falling 3% in the past 24 hours. Due to this correction, the altcoin lost support from the 200-day exponential moving average (EMA).

This was the last key support level after the digital asset lost its 50-day and 100-day moving average three days ago due to a 20% price drop on Matrixport FUD. The altcoin is trading at two-month lows and has fallen to $0.55, a key technical and psychological support level.

Both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) price indicators are currently strongly bearish, suggesting that XRP price may rebound from $0.550 levels.

XRP/USD 1-day chart. Source: TradingView

The highly anticipated approval of the spot BTC ETF is seen as a major bullish event for the crypto market and is expected to drive up the prices of all crypto assets. This may help XRP price recover.

However, in the worst-case scenario, i.e. a delay, XRP could fall further towards $0.50, invalidating the bullish case.