Swiss crypto asset manager 21Shares removed XRP from its ETPs because SEC filed a case against Ripple
Swiss crypto asset manager 21Shares, formerly known as Amun, has removed XRP from its exchange-traded products (ETPs). It seems that this stems from the fact that Ripple was sued by the SEC and things are still not over in recent days.
21Shares has removed XRP from its exchange-traded products (ETPs)
As mentioned, this move comes when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple and its executives Brad Garlinghouse and Chris Larsen. The regulator considers XRP security and says executives have raised billions of dollars through the sale of XRP’s unregistered securities.
The affected products were 21Shares’ flagship HODL or Crypto Basket Index ETP, KEYS or Bitwise Select 10 ETP and AXRP – a single-asset ETP tied to XRP.
But no ETP of 21Shares is listed on US exchanges, so why remove XRP?
CEO Hany Rashwan shared:
“The company’s index rules prohibit including any token that is a security and any token that might have liquidity issues. The risk on both sides is high, especially with a number of large over-the-counter (OTC) trading desks exiting the XRP market, specifically Jump Trading and Galaxy Digital.”
Since the SEC’s lawsuit, several exchanges have removed XRP support, including Bitstamp, OSL, CrossTower, and Beaxy. Crypto asset manager Bitwise liquidated his crypto index fund’s XRP position last week as well.
Meanwhile, 21Shares manages $ 250 million worth of assets on its products.
Read more:
- Why Was The SEC Complaint About Ripple Not Filed For Seven Years, Maybe They Didn’t Provide The Whole Story
- Ripple Co-Founder Jed McCaleb Stopped Dumping His XRP After The SEC Filed A Lawsuit Against Ripple