Connect with us

Bitcoin News

Grayscale Confirms Liquidation of Its XRP Trust; Forced By SEC Legal Battle With Ripple

Published

on

Grayscale Confirms Liquidation of Its XRP Trust; Forced By SEC Legal Battle With Ripple

Grayscale has successfully sold off all XRP Investment Trust shares. The preemptive action is due to an industry-wide dissociation from XRP, following the SEC’s suit.

Grayscale Investments has confirmed its dissolution of all XRP holdings, marking yet another company dissociating itself from the embattled digital asset at a dire time.

The asset management firm announced that it would liquidate all Grayscale XRP Investment Fund units, citing the fallout from Ripple Labs’ legal battle with the Securities and Exchange Commission (SEC) as the reason for its decision.

Everyone Ditches XRP

Grayscale explained that the decision came as a knock-on-effect of other exchanges and industry players cutting ties with Ripple.

Exchanges like Coinbase, Bittrex, and Blockchain.com have either delisted XRP entirely or suspended trading activities involving the asset indefinitely.

Grayscale believes the spate of delistings would eventually cause difficulty for investors, who would be unable to convert their XRP to dollars. Grayscale explained in the announcement,

“In connection with the dissolution, the Sponsor has liquidated the Trust’s XRP and intends to distribute the net cash proceeds to Trust shareholders, after deducting expenses and providing appropriate reserves and subject to any applicable withholding. The Trust will terminate following distribution of the net cash proceeds.”

No Surprises Here

Many have suspected Grayscale would dissolve its XRP Trust. The firm’s web portal for its XRP Investment Trust had been closed for a while. Nothing was confirmed then, but it was evident that the company was gearing for an announcement concerning the XRP product.

Grayscale had temporarily stopped accepting investments from new investors in six of its crypto trusts in December.

The company eventually reopened its Bitcoin Trust (GBTC), Ethereum Trust (ETHE), and the Digital Large Cap Fund Trust this week. Still, it left its XRP trust in the cold, leaving many to speculate about the product’s dissolution.

Grayscale is far from the only investment company to distance itself from XRP.

Last month, Bitwise Asset Management announced that it had liquidated its XRP shares as part of the Bitwise 10 Crypto Index Fund. The firm explained that all XRP holdings had been divested, in line with its policy of not investing in cryptocurrencies that could be deemed as securities.

Gavin Michael, the CEO of crypto investment firm Bakkt, has also shut down rumors that the company will support XRP. Bakkt’s foray into the crypto space began with Bitcoin, and it remains focused on the leading cryptocurrency. However, Michael told Axios this week that the firm is looking to support other digital assets in the future. While he didn’t allude to the SEC’s suit, he confirmed that XRP isn’t in the company’s plans.

For now, XRP investors will have to decide whether they will sell off any XRP they own or hold for the long term to see how the battle shakes out. The pretrial conference is set for February.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading
Advertisement
0
Advertisement

Recent Posts

Copyright © 2019 The Crypto Report