Grayscale Moves To Eliminate XRP Trust, Blames SEC Saga
The problems of seems to be getting worse after a series of exclusion from the stock market and liquidation of institutional players. A few days after suspending its XRP Trust Fund and liquidating XRP positions from its Digital Large Cap Fund, Grayscale has finally moved to dissolve its XRP Trust. In a press release circulated yesterday, the world’s largest crypto hedge fund manager cited Ripple’s ongoing battle with the US Securities and Exchange Commission as the reason behind the move. Grayscale said: In response to the SEC’s action, certain major market participants have announced measures, including the delisting of XRP from major digital asset trading platforms, leading the Sponsor to conclude that it is likely that make it increasingly difficult for US investors to convert XRP into US dollars and thus continue the Trust’s operations. Following the dissolution, Grayscale has liquidated its XRP holdings and will distribute the cash proceeds to shareholders. Once the distribution process is complete, the company will terminate its XRP Trust. Surprisingly, it appears that the price of XRP is no longer responding to delisting announcements or sell-outs. The price of the digital asset fell to around $ 0.21 following the SEC’s lawsuit. However, XRP rallied to $ 0.35 and is currently trading at around $ 0.29. Along with a host of exchanges, Bitwise Asset Management had liquidated its XRP position in December 2020. Ironically, while the US watchdog insists that XRP is a security, regulators in non-US countries like Japan have declared XRP to be a currency.