Crypto Asset Manager Grayscale Dumps XRP Amid Ripple-SEC Legal Fiasco

Grayscale Investments has removed XRP from its diversified public crypto fund  — Grayscale Digital Large Cap Fund (DLC). The move could be yet another fallout from the current enforcement action by the U.S. Securities and Exchange Commission (SEC) against Ripple.

Grayscale Nixes XRP, Reallocates Liquidated Position

According to an announcement, Grayscale revealed that it removed XRP from its Digital Large Cap Fund (GDLC). Following the liquidation of the XRP holdings in the fund, the funds were used to purchase more Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) and Bitcoin Cash (BCH). Before the sale of XRP, the crypto token was about 1.46 % of the Fund.

Meanwhile, it seemed that the cause for the XRP removal resulted from an earlier announcement by Genesis Global Trading, the fund’s authorised participant. Towards the end of December, Genesis Global said that it would suspend XRP trading by Jan. 15, 2021.

While Grayscale does not mention the ongoing Ripple/SEC legal battle as a reason for its decision, the crypto asset manager joins the long list of cryptocurrency companies that have either delisted XRP or suspended trading on their platforms. Following the allegation, cryptocurrency platforms such as Binance, Coinbase, announced the suspension of XRP trading from January 2021.

Consequents Run Dire for Ripple

Back in Dec. 2020, the Commission alleged that Ripple conducted a $1.3 billion unregistered securities offering. The trial proceedings are expected to commence with a virtual pretrial conference slated for February.

Other fund managers like Bitwise have also liquidated their XRP holdings following the SEC’s lawsuit against Ripple. The negative blowback from these events has triggered a significant decline in XRP price with the token unable to post any gains during the recent altcoin resurgence.

Meanwhile, Ripple released a statement saying that it was ready to counter the SEC’s claims. The company further noted that the lawsuit hurt XRP holders with no connection to the company. Earlier in January, Ripple supporters filed a petition, asking the U.S. government to declare XRP as a currency.

 Jeannie Propes

Jeannie Propes– Technology My Name is Jeannie Propes, and I am 29 years old who is an industrialist other than a writer. I want to catch the attention of my audience and publishers without sound too dry and dull. I am the sort of person who adores his spare time by writing my thoughts and ideas for my audience or readers. My writing skills are not confined to any specific field, I wrote on many topics, but technology and stock Market articles are always my favorite. I love to express myself through creative modes such as drawing, singing, and writing. I love to spend my leisure time with my beloved cat, sleep or by playing my favorite video games.

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