Asset manager Grayscale is withdrawing XRP from its Digital Large Cap Fund, a fund of several cryptosystems. At the same time, the fund exclusively dedicated to XRP is currently closed to investors.
The turmoil for XRP continues
Difficulties for Ripple XRP continue to accumulate. After suspending trading on Coinbase, Crypto.com, and Binance’s U.S. branch, asset manager Grayscale is now divesting itself of XRP.
In a series of tweets published today, Grayscale stated that it has sold all of the XRP in its „Digital Large Cap Fund“, a fund that includes several cryptomoney funds. The XRPs accounted for approximately 1.46% of the fund, with the remainder consisting of Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC) and Ether (ETH). The revised components of the fund are 81.63% BTC, 15.86% ETH, 1.43% LTC and 1.08% BCH.
Although highly likely, Grayscale did not mention the recent Securities and Exchange Commission (SEC) lawsuit against Ripple as a reason for removing XRP from the fund. Rather, this withdrawal is in response to the suspension of XRP trading by Genesis Global Trading, the fund’s licensed manager.
At the same time, the Cryptosoft review fund exclusively dedicated to XRP is currently closed to investors. Grayscale still has $8.4 million in XRP, but is no longer accepting new investors for this cryptography.
As with every announcement of this type, the price of XRP has fallen rapidly. Here, the XRP lost almost 9% in the space of 25 minutes, before quickly recovering 5% afterwards :
This decision comes after Bitwise, another asset manager, liquidated $9.3 million in XRP from its fund.
Who will be the next to suspend XRP trading or offload Ripple’s cryptography? All bets are off…