Bitwise Asset Management has announced that the Bitwise 10 Crypto Index Fund has liquidated its position in XRP.
Crypto asset manager Bitwise acted shortly after the U.S. Securities and Exchange Commission (SEC) sued the token’s alleged creator, Ripple Labs, for conducting an unregistered and ongoing securities offering.
“The Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws. Bitwise’s decision to liquidate its position in XRP was based on consideration of new public information from the SEC’s complaint,” the firm said.
XRP had a share of 3.8% in Bitwise’s crypto index fund before liquidation. The Fund liquidated its position and reinvested the proceeds in other portfolio assets.
Some crypto exchanges, including OSL (Hongkong), CrossTower (US), and Beaxy, have halted XRP trading.
Ripple CEO: 3 reasons XRP token is not a security
Ripple CEO Brad Garlinghouse is making his case for why XRP should get the same treatment as bitcoin and ether. Speaking on Thursday at the CB Insights Future of Fintech conference in New York City, live-streamed by Yahoo Finance, Garlinghouse presented “three key arguments” for why XRP is not a security.
Here are Garlinghouse’s three arguments:
1. “If Ripple the company shut down tomorrow, the XRP ledger would continue to operate. It’s open-source, decentralized technology that exists independent of Ripple.”
2. “The people buying XRP, they don’t think they’re buying shares of Ripple. There’s a company called Ripple, we are a private company, we have investors… but buying XRP doesn’t give you ownership of Ripple, it doesn’t give you access to dividends or profits that come from Ripple.”
3. “XRP is solving a problem. There’s no utility in a security.”
Read more:
- By Plunging Over 35% Over The Past Two Days, XRP Price Has Effectively Erased Its November Rally
- SEC Sues Ripple And Two Executives, XRP Dumps 20% On SEC Lawsuit Worries