Fun

Grayscale Investments Terminates XRP Trust Citing Impact of SEC Lawsuit Against Ripple

News Feed - 2021-01-14 09:01:33

Grayscale Investments Terminates XRP Trust Citing Impact of SEC Lawsuit Against Ripple


Grayscale Investments is shutting down its Grayscale XRP Trust and liquidating its XRP holdings in order to distribute cash proceeds to the trust’s shareholders. The firm cited difficulty in converting XRP into U.S. dollars following the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple. Grayscale Axes XRP Trust


Grayscale Investments announced Wednesday that it is commencing the “dissolution of Grayscale XRP Trust.”


The company detailed that on Dec. 22, the U.S. Securities and Exchange Commission (SEC) decided “to file a federal court action against certain third parties asserting that XRP is a ‘security’ under federal securities law.” It added: In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms.


This has resulted in Grayscale’s “conclusion that it is likely to be increasingly difficult for U.S. investors, including the [Grayscale XRP] Trust, to convert XRP into U.S. dollars, and therefore continue the trust’s operations.”


Grayscale further explained that it “has liquidated the trust’s XRP and intends to distribute the net cash proceeds to trust shareholders, after deducting expenses and providing appropriate reserves and subject to any applicable withholding.”



The company emphasized: The trust will terminate following distribution of the net cash proceeds.


After removing the XRP Trust, Grayscale now offers nine crypto investment products: the bitcoin trust, bitcoin cash trust, ethereum trust, ethereum classic trust, horizen trust, litecoin trust, stellar lumens trust, zcash trust, and the digital large-cap fund. On Jan. 13, the total assets under management across its crypto products total $24.7 billion.


Do you think Grayscale did the right thing in closing down its XRP product? Let us know in the comments section below. Oaktree Capital Chairman Warms up to Crypto — Thankful His Son Owns Enough Bitcoin for the Family MARKETS AND PRICES | 24 mins ago Goldman Sachs Sees Bitcoin Market Becoming More Mature MARKETS AND PRICES | 3 hours ago Tags in this story Grayscale Investments, grayscale liquidating xrp, grayscale xrp trust, Ripple, sec lawsuit, terminating, XRP


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Twitter Changes Bird Logo to Picture of Doge, Dogecoin Price Surges 23% After the Change
Twitter Changes Bird Logo to Picture of Doge, Dogecoin Price Surges 23% After the Change On Monday, Twitter users noticed that the traditional blue bird logo had been replaced by a
20% of Binance’s new hires this year will be in compliance, says CEO
Martin Young3 hours ago20% of Binance’s new hires this year will be in compliance, says CEOThe company aims to increase its compliance workforce by 200 this year, along with another 800 staff in other departments. 635
3 reasons why Bitcoin price struggles to reclaim $64K
Nancy Lubale5 hours ago3 reasons why Bitcoin price struggles to reclaim $64KBitcoin’s tumultuous week continues as data points to further downside in BTC price.2599 Total views5 Total sharesListen to article 0:00Market
DEC777 Decentralized Exchange – The Last Resort for the People Who Lost Trust in Centralized Exchange
DEC777 Decentralized Exchange – The Last Resort for the People Who Lost Trust in Centralized ExchangeWhy do we have to store our digital assets with hesitation? We’ve lost t
Nigerian Judge Rules in Favor of Accused Crypto Startup, Accounts to Be Reopened
Nigerian Judge Rules in Favor of Accused Crypto Startup, Accounts to Be Reopened A Nigerian Federal Court judge recently ruled that the two frozen bank accounts belonging to Rise V
China’s Anhui Province to Shut Down Crypto Farms as Grid Operator Issues Closure Notice, Reports
China’s Anhui Province to Shut Down Crypto Farms as Grid Operator Issues Closure Notice, Reports Anhui has reportedly become China’s latest region planni
US Lawmaker Introduces Legislation to Regulate Crypto Assets and Protect Investors
US Lawmaker Introduces Legislation to Regulate Crypto Assets and Protect Investors A U.S. congressman has introduced the Digital Asset Market Structure and Inves
President Lukashenko Signs Decree to Create Crypto Wallet Register in Belarus
President Lukashenko Signs Decree to Create Crypto Wallet Register in Belarus President Alexander Lukashenko has signed another decree regulating the crypto economy of Belarus. It
Amaka Nwaokocha11 hours agoSam Bankman-Fried’s testimony to challenge government claims, lawyer tells judgeThe testimony will challenge the government‘s claims, especially the counsel’s role in auto-deletion, north
OCC Wants to End Banks’ Discrimination of Disfavored Businesses Including Crypto Companies
OCC Wants to End Banks" Discrimination of Disfavored Businesses Including Crypto Companies The OCC is proposing a rule change that compels large U.S. banks to of
Mark Cuban says he wants Gary Gensler’s job as head of the SEC
Tristan Greene5 hours agoMark Cuban says he wants Gary Gensler’s job as head of the SECThe crypto-friendly billionaire appears to be throwing his full support behind US presidential candidate Kamala Harris.1580 Total v
Helen Partz22 minutes agoBitstamp crypto exchange to raise funds for global expansion: ReportOne of the world’s oldest cryptocurrency exchanges, Bitstamp, is trying to scale its operations with new fundraising advised