Grayscale investments round out the grayscale XRP Trust and wind up XRP holding companies to distribute the proceeds in cash to the shareholders of the trust. The firm mentioned difficulties in converting XRP in US dollars following the lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple.
Grayscale axes XRP Trust
Grayscale Investments announced on Wednesday that it will begin the “dissolution of Grayscale XRP Trust.”
The company explained that on Dec. 22, the US Securities and Exchange Commission (SEC) decided “to file a federal lawsuit against certain third parties who allege that XRP is a “security” under federal securities laws. It added:
In response to the SEC’s action, certain key market participants have announced measures, including the deletion of XRP of major digital asset trading platforms.
This has resulted in Grayscale’s conclusion that it is likely to be increasingly difficult for US investors, including the [Grayscale XRP] Trust, to convert XRP in US dollars and therefore continues the activities of the trust. “
Grayscale went on to explain that it “has disbanded the trusts XRP and intends to distribute the net cash proceeds to trust shareholders, net of expenses and provision of appropriate reserves and subject to any applicable withholding. “
The company stressed:
The trust will be terminated upon payment of the net cash proceeds.
After removing the XRP Trust, Grayscale now offers nine crypto investment products: the bitcoin trust, bitcoin cash trust, ethereum trust, ethereum classic trust, horizen trust, litecoin trust, stellar lumens trust, zcash trust, and the digital large-cap fund. As of January 13, the total assets under management of its crypto products were $ 24.7 billion.
Do you think Grayscale did the right thing by shutting it down XRP Product? Let us know in the comments below.
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