Grayscale dumps XRP: Here's where it's putting the cash

Grayscale dumps XRP: Here'south where information technology's putting the cash

Grayscale Investments is the latest major crypto role player to drop its association with Ripple'southward token.

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Grayscale dumps XRP: Here's where it's putting the cash

Grayscale Investments, the globe'south largest cryptocurrency asset manager, announced Tuesday that it has liquidated its XRP holdings and used the remaining funds to purchase upwardly more Bitcoin (BTC), Bitcoin Greenbacks (BCH) and Litecoin (LTC).

The decision affects Grayscale's Digital Large Cap Fund, a market-cap-weighted asset that provides exposure to the largest cryptocurrencies by market capitalization. The sale of XRP occurred on Monday, less than a week subsequently Genesis Global Trading, the fund'southward authorized participant, announced it would soon temporarily suspend XRP trading, likely in relation to the lawsuit filed by the United States Securities and Substitution Commission against Ripple.

Genesis Global Trading plans to halt all XRP transactions on Jan. xv.

Prior to the sale on Mon, XRP accounted for roughly 1.46% of the Digital Large Cap Fund. The fund'due south components are now 81.63% BTC, xv.86% Ether (ETH), 1.08% BCH and 1.43% LTC. Each share represented 0.00047489 BTC, 0.00287011 ETH, 0.00047537 BCH and 0.00167314 LTC.

Grayscale besides confirmed the fund'southward new composition in a serial of Twitter posts on Tuesday.

3/ $XRP was removed post-obit DLC Fund's Quarterly Review (12/31/20). No others avails qualified for inclusion. The below tabular array highlights DLC Fund's weightings equally of January four, 2021: $BTC $ETH $BCH $LTC pic.twitter.com/g3QQEf0kd8
— Grayscale (@Grayscale) January 5, 2021

The fund manager said XRP was "removed following DLC Fund's Quarterly Review (12/31/xx)." It explained that no other asset qualified for inclusion in the fund.

Grayscale's assets under management recently eclipsed $20 billion for the first time, highlighting broad institutional demand for Bitcoin and other digital assets. The nugget manager is scooping up Bitcoin in greater quantities, with at least one metric showing Grayscale bought nearly three times more BTC than was mined in December.

Although XRP was amid several large-cap cryptocurrencies to rally in recent months, its outlook remains clouded by a wave of exchange delistings in the United States. Bitwise Asset Direction became one of the get-go loftier-profile fund managers to unload its XRP holdings before Christmas.

For its part, Ripple has vowed to fight the SEC'southward accusations that the company conducted an illegal securities offer of its XRP token. A statement released terminal week past Ripple said the firm will continue to operate and support its products outside the U.s..