Grayscale Liquidates XRP Trust, Citing SEC's Ripple Lawsuit

The world’s largest asset manager, Grayscale has announced the liquidation of XRP Trust following the SEC’s lawsuit against Ripple.

January 14, 2021 | AtoZ Markets – Grayscale Investments has announced the liquidation of its XRP investment trust. The decision was influenced by the lawsuit of the US Securities and Exchange Commission (SEC) against Ripple on December 23.


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The company said that after the lawsuit, market participants announced the delisting of XRP from major platforms for trading digital assets.

“In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms, resulting in the Sponsor’s conclusion that it is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP into U.S. dollars, and therefore continue the Trust’s operations. In connection with the dissolution, the Sponsor has liquidated the Trust’s XRP and intends to distribute the net cash proceeds to Trust shareholders, after deducting expenses and providing appropriate reserves and subject to any applicable withholding. The Trust will terminate following distribution of the net cash proceeds,” Grayscale mentioned in the official announcement," said Grayscale Investments.

The company plans to distribute the proceeds from the sale of XRP to investors. Then the investment trust will cease to exist.

Following the news, XRP dipped slightly but stayed above $0.29. At the time of writing, XRP is still trading at $0.29, after losing more than 60% of its value in December due to the SEC’s lawsuit. The price of XRP reached a high of $0.35 earlier this month.

As a reminder, on January 5, Tetragon Financial Group filed another lawsuit against Ripple. On January 8, Ripple CEO Brad Garlinghouse answered questions about the SEC claims.

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