Grayscale Investments is closing its grayscale XRP Trust and liquidate his XRP Participation to distribute cash proceeds to the shareholders of the trust. The company cited difficulties with the conversion XRP in US dollars following the lawsuit filed by the US Securities and Exchange Commission against Ripple.
Grayscale axes XRP trust
Grayscale Investments announced on Wednesday that it was beginning to liquidate Grayscale XRP Trust.”
The company said that on December 22nd, the US Securities and Exchange Commission decided to “file a lawsuit in federal court against certain third parties who allege this XRP is a “security” within the meaning of the Federal Securities Act. “It added:
In response to the SEC’s actions, some significant market participants have announced actions, including delisting of XRP of major digital asset trading platforms.
This has led Grayscale to the conclusion that it is likely to become increasingly difficult for US investors, including US investors [Grayscale XRP] Trust to convert XRP in US dollars and therefore continue the trust’s operations. “
Grayscale went on to explain that it “liquidated the trusts XRP and intends to distribute the net cash proceeds, after deducting costs and making adequate provisions, to the trust shareholders and subject to any withholding taxes. “
The company emphasized:
The trust ends after the net proceeds have been distributed.
After removing the XRP Trust, Grayscale now offers nine crypto investment products: the Bitcoin Trust, the Bitcoin Cash Trust, the Ethereum Trust, the Ethereum Classic Trust, the Horizen Trust, the Litecoin Trust, the Star Lumen Trust Trust, the Zcash Trust and the digital large-cap fund. As of January 13, the total assets under management of its crypto products were $ 24.7 billion.
Do you think Grayscale did the right thing to shut it down? XRP Product? Let us know in the comments below.
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