Grayscale Investments, the world’s largest cryptocurrency asset manager, revealed Tuesday that it had liquidated its XRP shares and used the remaining assets to acquire more Bitcoin (BTC), Bitcoin Cash (BCH) and Litecoin (LTC).
The decision affects the Grayscale Digital Big Cap Portfolio, a market-cap-weighted commodity that gives market capitalisation exposure to the largest cryptocurrencies. The selling of XRP took place on Monday, less than a week after Genesis Global Trading, the Fund’s approved participant, announced that it would soon halt XRP trading, presumably in response to the litigation brought by the United States Securities and Exchange Commission against Ripple.
Genesis Global Trading plans to halt all XRP transactions on Jan. 15.
Prior to Monday’s sale, XRP accounted for nearly 1.46 per cent of the Digital Big Cap Portfolio. Fund elements are currently 81.63 percent BTC, 15.86 percent Ether (ETH), 1.08 percent BCH and 1.43 percent LTC. Every share accounted for 0.00047489 BTC, 0.00287011 ETH, 0.00047537 BCH and 0.00167314 LTC.
Grayscale has verified the current structure of the Fund in a series of Twitter posts on Tuesday.
The fund manager said that XRP had been “removed after the quarterly review of the DLC Fund (12/31/20).” He clarified that no other asset eligible to be included in the fund.
Grayscale’s funds under management have just eclipsed $20 billion for the first time, demonstrating the wide institutional market for bitcoin and other crypto assets. The fund manager is scooping up Bitcoin in higher amounts, with at least one metric indicating Grayscale purchased about three times as much BTC as it was mined in December.
Although XRP has been one of the big cryptocurrencies to recover in recent months, its future remains clouded by a series of exchange delistings in the United States. Bitwise Asset Management is one of the first high-profile investment managers to unload their XRP holdings before Christmas.
On its part, Ripple has vowed to tackle SEC’s allegations that the firm has made illicit shares selling its XRP token. A statement issued last week by Ripple confirmed that the organisation will continue to operate and promote its goods outside the United States.
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