Grayscale sold all of its XRP holdings to buy Bitcoin, Ether and other crypto assets. In an announcement released today, Grayscale announced that the company has sold all of its XRP tokens from the Digital Large Cap Fund.
Grayscale sells all XRP holdings
XRP appears to be darker when Grayscale Investment announced that all of the XRP tokens it held in its Digital Large Cap Fund had been sold.
That news comes days after a report was released that Grayscale purchased large numbers of XRP tokens at a much lower price. According to Cryptowhale, the company had bought over 12 million XRP tokens on New Year’s Eve.
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.
This decision could be related to Genesis Global Trading, the fund’s only authorized participant, who previously announced that it would suspend XRP trading on its platform. Genesis cited the impending lawsuit between Ripple and the Securities and Exchange Commission (SEC) about why it decided to stop trading crypto assets as of January 15, 2020.
Grayscale announced that the proceeds from the liquidation would be used to purchase other crypto assets such as bitcoin (BTC), bitcoin cash (BCH) and litecoin (LTC).
The XRP token is still suffering from the effects of the upcoming legal battle against Ripple Labs
With reports leaked that the US Securities and Exchange Commission was suing Ripple, the regulator alleged that the company was making an unregistered security offering worth $ 1.3 billion.
As a result of this legal battle, many crypto exchanges have begun removing the token from their platform. Bitwise, Coinbase, Binance, and a host of other major crypto exchanges have either suspended or completely stopped trading tokens on their platform.
Another effect of the lawsuit is the drop in the price of crypto assets since the legal problems began. Since then, the price of XRP has fallen below $ 0.20, down 70%.
Ripple has vowed to stand up against the SEC and found that the allegations against them remain false and baseless. The company also announced that it would continue to support its activities and products outside of the United States.
What do you think of Grayscale, which is selling its XRP holdings from the Digital Large Cap Fund? Let us know what you think on this matter in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to submit an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.