The world’s largest crypto asset management firm, Grayscale, announced that it has dumped its XRP holdings. The firm used the cash to buy two leading crypto assets- Ethereum and Bitcoin.
XRP removed from the investment fund
Grayscale removed XRP from assets included in its investment fund- Grayscale Digital Large Cap Fund (DLC Fund). The firm decided to remove the asset during its quarterly review and said that no other digital asset qualified for taking up XRP’s place. Therefore, the firm removed all XRP holdings and used the cash to buy Bitcoin and Ethereum instead. It has also made purchases of Litecoin and Bitcoin Cash.
The DLC Fund currently includes Bitcoin (81.6%), Ethereum (15.9%), Litecoin (1.4%), and Bitcoin Cash (1.1%). Before it was removed, XRP formed 1.6% of the fund. As of January 4, 2021each share of the fund represents 0.00047489 Bitcoin (BTC), 0.00287011 Ethereum (ETH), 0.00047537 Bitcoin Cash (BCH), and 0.00167314 Litecoin (LTC).
Grayscale mentions in its announcement, “0.00047489 Bitcoin (BTC), 0.00287011 Ethereum (ETH), 0.00047537 Bitcoin Cash (BCH), and 0.00167314 Litecoin (LTC).”
Another hit for XRP
The recent announcement from Grayscale comes at distressful times for XRP. The cryptocurrency has been delisted from several cryptocurrency exchanges. This happened after the US authorities went after the crypto coin and questioned its regulatory status. Leading crypto asset management firm Bitwise also announced the liquidation of XRP worth $9.3 million last month after the US Securities and Exchange Commission (SEC) filed a lawsuit against XRP issuer Ripple and its top executives.
Genesis Global Trading, which is one of the authorized partners of the Grayscale fund also announced a temporary suspension of XRP on its platform starting January 15, 2021. Grayscale’s latest data suggests that the total value of the company’s digital assets under management is $23 billion. It currently holds 600,000 Bitcoin worth over $20.5 billion. Its Ethereum is valued at $3.2 billion.