Grayscale Drops XRP From Large Cap Crypto Fund Following Ripple SEC Suit

2019-11-12-09.58.18
5 January 2021

Digital asset manager Grayscale Investments is following Bitwise’s footsteps in removing XRP from its large-cap crypto fund.

The firm, which is owned by CoinDesk parent company Digital Currency Group, announced Tuesday it would no longer hold XRP in the Grayscale Digital Large Cap Fund, which is also made up of BTC, ETH, BCH and LTC.

The move comes a couple weeks after fellow asset manager Bitwise liquidated $9.3 million in XRP from its crypto index fund and the U.S. Securities and Exchange Commission filed a suit against Ripple, alleging it had conducted an unregistered sale of securities with its XRP token.

Grayscale still operates a standalone XRP Trust but stopped accepting new subscriptions to the fund on Dec. 23, Craig Salm, Grayscale’s legal director, said via email.

“Existing investors in the Trust will continue to receive annual reports, audited financial statements, and tax information statements,” Salm said. “The Trust will continue its daily 4 PM NAV striking as well as other associated functions pursuant to the Trust’s governing documents.”

Disclosure
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.