Bitwise Liquidates XRP Position in Crypto Index Fund Following SEC Suit Against Ripple

Crypto money manager Bitwise has liquidated $9.3 million worth of XRP in its crypto index fund.

The firm acted shortly after the U.S. Securities and Exchange Commission (SEC) sued the token’s alleged creator, Ripple Labs Inc., for conducting an unregistered and ongoing securities offering.

“Prior to the sale of the asset on December 22, 2020, XRP was approximately 3.8% of the Fund,” the firm wrote. “The Fund liquidated its position and reinvested the proceeds in other portfolio assets.”

The Bitwise 10 Crypto Index Fund is largely denominated in bitcoin and ether. The funds from its liquidated XRP position have been reinvested into the other assets in the fund, according to a company press release. The fund also holds litecoin, bitcoin cash, LINK, ADA, XLM, EOS and tezos. 

“The Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws,” the company wrote. “Bitwise’s decision to liquidate its position in XRP was based on consideration of new public information from the SEC’s complaint.”

Read more: SEC Sues Ripple Over 7-Year, $1.3B ‘Ongoing’ XRP Sale