Grayscale's XRP-Focused Model Portfolios Offer Advisors a New Way In

Grayscale Investments has launched a new suite of Model Portfolios for financial advisors that gives a significant weight to XRP. The Digital Assets Next Gen strategy, which excludes Bitcoin, allocates 26.11% of its portfolio to the Grayscale XRP Trust ETF (GXRP). This makes XRP the second-largest holding behind Ether and puts it in the top three across the firm's two flagship strategies.

The suite includes four strategies with different objectives: Core Plus, Leaders, Next Gen, and Infrastructure. They are market cap-weighted, rebalanced quarterly, and cap any single asset at 40%. Advisors have full discretion over whether and how they employ the suggested weights.

XRP's weight shrinks when Bitcoin returns to the mix. In the Digital Assets Leaders model, GXRP is third at 11.92%, behind Ether at 38.57% and Bitcoin at 37.25%. The models are designed to provide a portfolio-level channel for advisors to gain exposure to XRP without holding the token directly.

Grayscale's Global Head of Distribution, Laurie Katz, said that advisors are looking for ways to bring digital assets into client portfolios without having to build and maintain allocations asset by asset. The launch comes as demand for regulated XRP products runs warm, with XRP exchange-traded funds experiencing inflows in early September.