Grayscale Investments Eliminates XRP In Its Digital Large Cap Fund

Grayscale sold all of its XRP holdings to buy bitcoin, ether, and other crypto assets. In an announcement earlier today, Grayscale said the company has sold all of its XRP tokens from the Digital Large Cap Fund.

Grayscale sells all XRP funds

There seems to be more gloom for XRP as Grayscale Investment announced that it has sold all of the XRP tokens it holds in its Digital Large Cap Fund.

The news comes days after the publication of a report that Grayscale had purchased a large number of XRP tokens at a much lower price. According to data from Cryptowhale, the company had purchased more than 12 million XRP tokens on New Years Eve.

However, in what appears to be a twist in the decision of the leading crypto investment firm, the company has now decided to completely liquidate all XRP holdings in the large-cap fund.

The move could be linked to Genesis Global Trading, the fund’s only authorized participant, which earlier announced it would suspend XRP trading on its platform. Genesis cited the impending lawsuit between Ripple and the Securities and Exchange Commission (SEC) as an explanation for why it decided to stop trading the crypto asset from January 15, 2020.

Grayscale did it known that the liquidation proceeds were used to purchase other crypto assets such as Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC).

XRP token still under the effects of impending litigation against Ripple Labs

Since reports revealed that the US SEC was going to sue Ripple, the regulator has alleged that the company is offering an unregistered security offering of $ 1.3 billion.

Due to this litigation, many crypto exchanges have started to remove the token from their platform. Bitwise, Coinbase, Binance, and a host of other big crypto exchanges have either suspended or stopped trading the token altogether on their platform.

Another effect of the lawsuit is the drop in the price of the crypto asset since the legal issues arose. Since then, the price of XRP has fallen below $ 0.20, which equates to a 70% drop.

Ripple has vowed to stand up against the SEC, noting that the allegations against it remain false and unfounded. The company also said it will continue to support its business and products outside of the United States.

What do you think of the grayscale sale of his Digital Large Cap Fund’s XRP holdings? Let us know what you think of this topic in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons