By Solomon Odunayo
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…”
3/ $XRP was removed following DLC Fund's Quarterly Review (12/31/20). No others assets qualified for inclusion. The below table highlights DLC Fund’s weightings as of January 4, 2021: $BTC $ETH $BCH $LTC pic.twitter.com/g3QQEf0kd8
— Grayscale (@Grayscale) January 5, 2021
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.
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