The recent SEC lawsuit against Ripple has adversely affected the performance of XRP in so many ways. Several top exchanges delisted the coin, and the price has plummeted by more than 70% since then.
On Tuesday, the leading digital assets management firm, Grayscale Investments, is the latest institutional investor to wash its hands off XRP.
According to a recent update, the company has delisted and subsequently sold all XRP assets in its Grayscale Digital Large Cap Fund, using the proceeds from the sale to purchase other digital assets contained in the Fund.
The Grayscale Digital Large Cap Fund was created to allow investors to invest in a wide variety of digital assets with large market caps, including Bitcoin, Ethereum, and more, without having to buy, store, and sell these assets on their own.
The decision to remove XRP from the Grayscale Digital Large Cap Fund had stemmed from an earlier announcement made on 30th December 2020 by the Fund’s Authorized Participant, Genesis Global Trading Inc.
Genesis Global had announced that it would temporarily halt every XRP trading on all of its platforms starting January 15, 2021.
The announcement of XRP’s delisting was made in line with the Fund’s quarterly review. The Fund’s documentation had clearly stated that a digital asset could be removed from the Fund on certain bases, including if the Authorized Participant of the Fund can no longer trade or provide support for it.
Before the sale of the Fund’s XRP assets on Monday, XRP had made up approximately 1.46% of the Fund. The money realized from the sale has been reallocated to other portfolio assets, namely, Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
As noted earlier, several cryptocurrency exchanges and fund managers have taken the precautionary move to delist the crypto asset, or at least halt XRP transactions to avoid attracting the wrath of financial regulators. Coinbase more recently joined the queue of exchanges that have suspended XRP trading on their platforms.
While fate of XRP is yet to be determined, but the SEC has given Ripple a date for the first pretrial conference.
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Read original at Coinfomania
Author: Obike Favour