Thursday, April 15, 2021

Grayscale Investments Removes XRP from Its Digital Large Cap Fund

The world’s largest crypto manager, Grayscale investments, has reportedly removed XRP from its Digital Large Cap Fund.

In an announcement on Tuesday 5th January 2021, Grayscale stated that it has sold all XRP from the fund on Monday and bought more of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

Before the major selloff, XRP was approximately 1.46% of the fund. The revised components of the fund are BTC (81.63%), ETH (15.86%), LTC (1.43%), and BCH (1.08%).

Read Also: Grayscale Now Has $110 Million Worth of Ethereum (ETH) So Far In 2020

Grayscale also confirmed the new development in a series of tweets:

“XRP was removed following DLC Fund’s Quarterly Review (12/31/20). No others assets qualified for inclusion…”

As of the time of writing, Grayscale Investments has not stated the major reason behind the selloff but said Genesis Global Trading, the authorized participant of the fund, is suspending XRP trading on 15th January, so it had to remove the asset.

In addition to the above reason stated, this action can also be attributed to the legal battle between Ripple and the United States Securities and Exchange Commission (SEC).

On 22nd December 2020, U.S. SEC filed a lawsuit against Ripple for the alleged sale of XRP termed as an unregistered security.

Read Also: David Schwartz: I Hold More Than 1,000,000 XRP and Less Than 10,000,000 XRP

At the moment, it’s not clear whether other Grayscale’s XRP product, Grayscale XRP Trust, would face similar action.

Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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