Aofex

Grayscale Removes XRP from Its DLC Fund

UTC by Mercy Tukiya Mutanya · 2 min read
Grayscale Removes XRP from Its DLC Fund
Photo: Shutterstock

DLC Fund-authorized participant Genesis Global Trading announced that all XRP transactions would be suspended on January 15, 2021.

Digital assets manager Grayscale has removed XRP from its Digital Large Cap Fund and reinvested in other crypto assets. This is the latest in a barrage of XRP delistings prompted by a lawsuit by the United States Securities and Exchange Commission (SEC) against Ripple Labs citing the illegal sale of securities.

Grayscale announced this on Tuesday via Twitter, declaring that funds realized from the liquidation were used to purchase Bitcoin, Bitcoin Cash and Litecoin.

SEC Lawsuit against Ripple Results in a Flurry of XRP Delistings

The SEC announced on 22 December 2020 that it had ‘filed an action against Ripple and two of its executives.

Stephanie Avakian, SEC’s Enforcement Division Director explained:

“We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple’s business and other important long-standing protections that are fundamental to our robust public market system.”

Some major crypto exchanges responded by discontinuing XRP trading. These include Coinbase, Binance.US, eToro, Crypto.com, OKCoin and Bittrex; with Grayscale being the latest. Crypto payments company Wirex, Bitwise Asset Management and the app Ziglu also cut ties with the coin.

Grayscale Re-invests in Other Coins

On Monday, DLC Fund-authorized participant Genesis Global Trading announced that all XRP transactions would be suspended on January 15, 2021, at 5 p.m. ET. Prior to Monday’s liquidation, XRP accounted for 1.46% of the DLC Fund. The fund is now comprised of 81.63% BTC, 15.86% ETH, 1.08% BCH and 1.43% LTC.

Grayscale did not mention the SEC lawsuit as a reason for selling all its XRP. An XRP Trust overseen by Grayscale is still operational but ceased approving new subscriptions to the fund on December 23, according to Grayscale’s legal director Craig Salm.

“Existing investors in the Trust will continue to receive annual reports, audited financial statements, and tax information statements. The Trust will continue its daily 4 PM NAV striking as well as other associated functions pursuant to the Trust’s governing documents,” Salm clarified.

It remains to be seen whether the Trust will continue operating.

Ripple maintains that it will fight the SEC’s allegations and continue to proceed with business outside the US.

Altcoin News, Blockchain News, Cryptocurrency news, News
Mercy Tukiya Mutanya

Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student. She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.

Related Articles