Grayscale Investments has begun the dissolution of its Grayscale XRP Trust following the SEC lawsuit against Ripple
The world’s largest crypto investment firm, Grayscale, will close the Grayscale XRP Trust, marking the company’s loss of any relationship with XRP and Ripple.
Earlier today we announced that we’ve commenced the dissolution of our $XRP Trust.
More information in our press release here: https://t.co/vHO8qQRcqJ
— Grayscale (@Grayscale) January 13, 2021
Grayscale terminates all investment relationships with XRP
In the press release, Grayscale said the action to end Grayscale XRP Trust stems from the SEC filing a lawsuit against Ripple for issuing a “disguised security” as XRP, in violation of the US Federal Securities Act.
The notice writes:
“In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms, resulting in the Sponsor’s conclusion that it is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP into U.S. dollars, and therefore continue the Trust’s operations.”
Grayscale added that they have liquidated all assets in the Grayscale XRP Trust and will return the proceeds to the investor in the fund, after deducting costs and meeting other requirements.
It is known that as of January 12, the value of Grayscale XRP Trust is about 11.3 million USD, accounting for 0.00452% of the total value of 25 billion USD of cryptocurrencies that Grayscale is holding.
Grayscale’s periodic report published today also officially removed the XRP name from the company’s portfolio. Currently, this investment firm only supports Bitcoin, Ethereum, Bitcoin Cash (BCH), Litecoin, Ethereum Classic (ETC), Horizen (ZEN), Stellar Lumens (XLM), and Zcash (ZEC), with a total value of $ 24.7 billion.
Grayscale’s cryptocurrency portfolio statistics as of January 13, 2021
The move comes just over a week after Grayscale decided to remove XRP from the Digital Large Cap Fund, a move that has sparked speculation that the company will follow in the footsteps of 26 other major industry institutions that have stopped supporting. XRP follows the information sued by the SEC – including many big names such as Coinbase, Bitstamp, Bitwise, Binance.US, Simplex, …
However, the opinion about whether XRP is a security is still a hot topic of discussion. Most recently, the Japanese Financial Services Agency (FSA) stated that from the current regulatory perspective XRP is a true cryptocurrency, not security.
Unexpectedly, XRP price seems to have not been affected much by the negative news coming from Grayscale. At press time, XRP is trading at $ 0.292, up 2% from 24 hours ago.
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