Grayscale Investments has added an XRP trust to its suite of cryptocurrency investment products and the closed fund could lead to an XRP exchange traded fund.

The Grayscale XRP Trust, which is already open to accredited investors, offers exposure to XRP, the token of the XRP Ledger, according to a Thursday press release from Grayscale. The blockchain network is designed to make cross-border payments faster and more efficient.

“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. "By facilitating cross-border payments that take just seconds to complete, XRP has the potential to transform the legacy financial infrastructure."

The announcement comes as issuers try to meet growing demand for crypto-focused investments. Grayscale was among 11 issuers to debut spot bitcoin ETFs based on the price of the largest digital asset by market cap. The Stamford, Conn.-based company, which offers multiple crypto-based investment products, was also among eight issuers to introduce spot Ethereum funds based on the price of the Ethereum blockchain's ether token.

Both the Grayscale Bitcoin Trust ETF (GBTC) and Grayscale Ethereum Trust (ETHE) are conversions from previously existing trusts, inviting speculation that the XRP-based product could travel a similar path. "Grayscale launching a GBTC of XRP. It's like Deja vu all over again," quipped Bloomberg Senior ETF Analyst Eric Balchunas in a tweet Thursday.

XRP is the seventh largest digital asset with a $32.2 billion market value, according to data provider CoinMarketCap. Bitcoin and ether have roughly $1.2 trillion and $290 billion market caps, respectively.

The XRP trust is available through Grayscale traditional private placement, mirroring the structure of Grayscale’s other investment products. Grayscale previously offered a closed-end trust but ended it in January 2021 after the U.S. Securities and Exchange Commission sued XRP issuer Ripple Labs, alleging the token was a security under Federal law.

But in June, Ripple won a decision against the SEC, with a judge dismissing most of the regulatory agency's case and creating a more favorable environment for XRP.

GBTC, ETHE Net Flows

GBTC's net outflows have exceeded $20 billion, while ETHE's has had outflows of over $2.7 billion, according to U.K.-based asset manager Farside Investors. They are the only funds in their spot crypto categories with net outflows, although as conversions with by far highest expense ratios in the space, they differ from the other fledgling bitcoin and Ethereum products. GBTC has a 1.5% fee, while ETHE's is 2.5%.