Grayscale Research Head Points to XRP Being Undervalued, Valuations Expected to Correct Rapidly After Regulatory Clarity

Grayscale Research Director Zach Pandl recently stated that XRP’s current market pricing does not reflect its true utility and adoption level. Regulatory uncertainty is the core factor suppressing its valuation. He pointed out that once the CLARITY Act establishes clear rules for classifying crypto assets, XRP’s price is expected to undergo significant revaluation.

Systematic Regulatory Uncertainty Suppresses XRP Valuation

Pandl’s main argument is that there is a significant gap between XRP’s market value and its fundamentals, primarily caused by external regulatory factors rather than a lack of token capability.

Discrepancy Between Fundamentals and Pricing: Ripple continues to attract major financial institutions to use its network for cross-border payments to reduce transaction costs and accelerate clearing times. The ongoing increase in enterprise adoption should theoretically boost token value, but legal regulatory uncertainty causes institutional investors to remain cautious, limiting capital inflows.

SEC and CFTC Coordination Process: These two regulatory agencies are actively working to unify crypto regulation rules, aiming to provide clearer compliance guidance for businesses. Until the regulatory framework is clarified, large-capital allocations to XRP remain constrained.

Pandl emphasized: “Delays in regulatory approval do not diminish XRP’s fundamental value; they only postpone the market’s full recognition and pricing of that value.”

Legislative Progress of the CLARITY Act and Growing Demand for GXRP Trust

The CLARITY Act aims to establish a unified regulatory framework for the industry by clearly classifying crypto assets. However, its progress faces resistance, mainly due to disagreements among legislators over stablecoin yield rules and the difficulty in balancing various interests, making the 2026 passage date uncertain.

In the context of rising market expectations for regulatory clarity, the following phenomena are noteworthy:

Growing Demand for GXRP Trust: Grayscale’s XRP Trust (GXRP) allows retail and institutional investors to gain exposure to XRP through regulated channels. Recent increased interest indicates the market is proactively positioning for potential regulatory clarity.

Institutional Pre-positioning: Some institutional investors are choosing to accumulate XRP positions via trust and other compliant tools before the rules are officially implemented, aiming to have market positions ready for valuation adjustments.

Immediate Response to Regulatory Developments: After the SEC’s March 18 statement classifying XRP as a commodity, the market’s quick reaction to such fundamental catalysts confirms Pandl’s analytical logic.

Frequently Asked Questions

What does Grayscale mean by XRP “re-pricing”?

Pandl’s re-pricing refers to adjusting XRP’s market price from its current suppressed level due to regulatory uncertainty to a level aligned with its actual utility and enterprise adoption. He believes that once the legal framework is clear, investors—especially institutional investors—will be more confident increasing their XRP holdings. This systemic increase in demand will drive the price toward its “fair value.”

What impact would the delay of the CLARITY Act’s passage have on XRP?

If the CLARITY Act continues to be delayed, XRP’s valuation pressure may persist—not because the token itself is problematic, but because regulatory ambiguity causes large capital to remain on hold. However, as shown by the SEC’s administrative clarification on March 18, even before legislative completion, regulatory statements can provide some immediate clarity, partially alleviating valuation suppression.

How does Grayscale’s GXRP Trust differ from direct XRP holdings?

GXRP is a trust launched by Grayscale that allows investors to gain exposure to XRP without directly holding or custody the tokens. Compared to direct ownership, GXRP’s main advantages are operating as a regulated security, eliminating the need to manage digital wallets, and being suitable for holding within traditional brokerage accounts. The main disadvantages include management fees and the potential for the trust share price to trade at a premium or discount to XRP’s spot price.