Grayscale Doubles Down on XRP with 26% Allocation

Grayscale has revealed its Digital Assets Next Gen model portfolio for advisors, which includes a significant allocation to XRP. The financial giant's latest move shows increased confidence in Ripple's native coin, with XRP making up 26% of the portfolio.

This is a notable shift from previous years, when Grayscale rolled out its XRP-based exchange-traded fund (ETF) on the New York Stock Exchange (NYSE). The current allocation is considerably small compared to other Ripple-based ETFs like Bitwise's and Franklin Templeton's.

Grayscale holds XRP at Coinbase Custody, rather than speculating on spot market values. This shows a strong conviction in XRP as a long-term investment vehicle, which is reflected in other ETFs holding around 1.1 billion XRP.

The bigger question remains whether this will have a significant impact on XRP's price beyond crypto funds. The price of XRP still tumbled 8.8% on Wednesday following a spectacular 42.6% rally over the past 30 days.